The Australian Prudential Regulation Authority has published its 2026-27 Corporate Plan, setting strategic priorities for the next four years and a policy and supervision agenda for the next 12 to 18 months. The plan focuses on maintaining financial stability, balancing prudential objectives with industry costs and improving APRA’s effectiveness amid geopolitical, technological and economic risks. Supervisory work will target AI-enabled cyber threats, quantum computing risks, reliance on common technology platforms and material service providers, and weaknesses in geopolitical risk management. APRA will also review bank lending practices, begin developing a system-risk stress test covering cross-sector linkages and require selected large superannuation trustees to commission independent reviews of valuation governance. Policy priorities include consulting on a risk-sensitive capital framework linked to the proposed superannuation member compensation scheme, finalizing governance requirements expected to take effect at the start of 2028 and making targeted changes to bank capital and liquidity standards. APRA will also consult with the Australian Securities and Investments Commission on reducing administrative burdens under the Financial Accountability Regime and develop a prudential framework for large stored value facility providers, subject to government reforms. The overall policy agenda is intended to have a net neutral impact on regulatory burden, with new requirements broadly offset by simplification.

Original source