The Australian Prudential Regulation Authority (APRA) has announced its Corporate Plan for 2024-25, outlining a comprehensive strategy aimed at fortifying the stability and resilience of Australia’s financial sector. The plan, spanning the next four years, targets key areas within the banking, insurance, and superannuation sectors.
Central to APRA’s strategy is the enhancement of bank capital and liquidity standards, a response to recent global banking disruptions. The plan also emphasizes boosting operational resilience through the implementation of the new Prudential Standard CPS 230 on Operational Risk. Additionally, APRA is set to elevate industry standards for managing cyber risks.
A notable addition to APRA’s agenda is the introduction of its inaugural system-wide stress test, designed to assess the interconnectedness of the financial system. The authority is also advocating for the integration of climate risk considerations into decision-making processes by financial entities.
In the insurance domain, APRA will work closely with stakeholders to bridge the protection gap in household insurance coverage. The authority will also partner with the Australian Securities and Investments Commission to enforce compliance with the retirement income covenant among superannuation trustees.
On the internal front, APRA is dedicated to investing in its workforce and enhancing its data collection and analytical capabilities, bolstered by increased funding from the 2024-25 Federal Budget.
