The Reserve Bank of Australia has published its October 2025 Financial Stability Review, assessing the health and resilience of Australia’s financial system and concluding it remains well positioned to navigate elevated global uncertainty. The Review identifies the largest financial stability risks as originating offshore. Key external vulnerabilities highlighted include high and rising government debt levels in major economies, stretched asset valuations and leverage in global markets, and heightened geopolitical and operational risks. Domestically, the RBA finds most households with mortgages are keeping up with repayments and have built savings buffers, many businesses have established financial buffers, and Australian banks maintain high levels of capital and liquidity. The Review also emphasises the need for financial institutions to maintain prudent lending standards and strengthen operational resilience.
Reserve Bank of Australia 2025-10-02
Reserve Bank of Australia releases Financial Stability Review flagging offshore debt and market risks while noting strong domestic buffers
The Reserve Bank of Australia's October 2025 Financial Stability Review concludes that Australia's financial system is resilient amid global uncertainties, with key risks from high government debt, asset valuations, and geopolitical tensions abroad. Domestically, households and businesses have built financial buffers, and banks maintain strong capital and liquidity, underscoring the importance of prudent lending and operational resilience.