The Australian Prudential Regulation Authority (APRA) has continued its focus on the twin themes of “protecting the community today” and ensuring the Australian financial system is “prepared tomorrow” in its latest corporate plan.
APRA’s new corporate plan for 2022-2023 was designed to respond to rapid changes in the prudential regulator’s operating environment, including geopolitical tensions, inflationary pressures and rising interest rates, and the impact of new technologies. It also outlines APRA’s goal of enhancing its own performance by fostering a modern, highly skilled, and flexible working environment.
Over the next four years, APRA plans to protect the Australian community by:
- preserving the financial and operational resilience of Australia’s banks, insurers, and superannuation funds
- building on momentum to modernise the prudential architecture to ensure it remains fit for purpose both now and in the future
- better enabling data-driven decision-making by APRA’s stakeholders
To ensure the financial system is prepared for the challenges of tomorrow, APRA will:
- increase its focus on the evolving financial landscape in Australia including responding to the impact of new financial activities and participants
- help to find solutions to important challenges such as superannuation retirement income products, retirement income longevity solutions, insurance accessibility, and affordability for Australians, and the financial risks associated with climate change
- adopt the latest regulatory tools, techniques, and practices
“Despite the economic challenges of the past two years, Australia’s financial system remains stable and resilient,” APRA Chair Wayne Byres said. “In part, this is the result of many years of preparatory work by APRA and the institutions we supervise. However, we cannot afford to be complacent. Global economic conditions are forecast to deteriorate over the period ahead, exacerbated by the ongoing war in Ukraine, while the increases in cost of living and recent flooding events remind us that Australia is facing its own turbulence. As Australia’s prudential supervisor, APRA wants to see banks, insurers, and superannuation trustees retain their financial and operational strength. That best positions them to support their customers through periods of volatility and disruption. Our latest corporate plan will help us achieve these objectives by focusing on delivering our existing strategic priorities whilst keeping a watchful eye on changes in our operating environment and responding as needed.”
