Thursday, November 2, 2023
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APRA chair discusses monetary system initiatives


The chair of APRA, John Lonsdale, has advised the federal authorities what measures the regulator has taken to keep up the protection and soundness of the Australian monetary system.

In a gap assertion to the Senate Economics Laws Committee on Thursday, Lonsdale (pictured above) stated that APRA had launched its newest company plan final August, which detailed its priorities within the subsequent 4 years.

APRA’s technique thought of urgent components and dangers within the international monetary {industry} such because the rise in rates of interest, excessive inflation, geopolitical instability, the rising risk of cyberattacks and scams, and the elevated frequency of pure disasters linked to local weather change.

The regulator’s initiatives concerning these points included the next:

  • Addressing system broad dangers by enhancing cross-industry stress-testing
  • Heightened deal with operational resilience, together with cyber resilience, disaster administration and operational danger administration, to keep up the continuity of vital monetary companies
  • Taking classes from the abroad expertise in March to strengthen the banking system additional, with a deal with focused enhancements to make sure that Australian banks’ liquidity and capital buffers work as meant and that stress of 1 entity doesn’t have an outsized impression on the system
  • Local weather-related monetary dangers, together with a Local weather Vulnerability Evaluation for normal insurers and embedding local weather danger in APRA’s strategy to supervision
  • Bettering superannuation transparency to supply members with enhanced insights about funding efficiency and growing APRA’s deal with retirement outcomes.

Lonsdale stated APRA would proceed its plans to modernise and produce about improved {industry} supervision and transparency.

“Our efforts to modernise the prudential structure, plus cooperation with peer regulators comparable to with Australian Securities & Investments Fee (ASIC) on how we administer the inbound Monetary Accountability Regime (FAR), are examples of the place we’re contemplating methods to construct effectivity in regulatory operations,” stated Lonsdale.

Lonsdale additionally highlighted APRA’s lately launched annual report for 2022-2023 which showcased the actions and efficiency of the regulator in addition to the assessment by the Monetary Regulators Evaluation Authority (FRAA) which stated APRA had efficiently regulated the banking, insurance coverage, and superannuation industries.

“As ever, defending the monetary pursuits of Australians in such methods stays our objective at APRA,” stated Lonsdale.

APRA is the prudential regulator of the monetary companies {industry} and is tasked with supervising banks, credit score unions, constructing societies, normal insurance coverage and reinsurance firms, life insurance coverage, non-public well being insurers, pleasant societies, and most members of the superannuation {industry}.

What do you concentrate on APRA’s initiatives? Tell us your ideas within the feedback beneath.

 

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