The Coalition Government will boost the Australian Prudential Regulation Authority’s (APRA) capabilities with $58.7 million of new funding and ensure continuity of leadership through the reappointment of Mr Wayne Byres as Chair.
The new funding will allow APRA to reinforce the resilience and soundness of our financial system at a time of significant reform.
Provided over four years from 2018-19, the new funding will:
- enhance APRA’s supervision across regulated industries by increasing the number of frontline supervisors for the largest and most complex financial institutions;
- enhance APRA’s ability to identify and address new and emerging risk areas, such as cyber, fintech and culture, by building internal expertise and increasing access to technical specialists outside APRA;
- improve APRA’s data collection capabilities in order to leverage the benefits of inter-agency intelligence sharing; and
- provide for a review of APRA’s enforcement strategy and its use of formal enforcement powers across the industries it supervises, including superannuation.
Mr Byres’ reappointment as Chair for five years is important for stability during this time of significant reform in Australia’s financial system. In addition to pursuing a broad agenda to build resilience across the industries it supervises, APRA has been undertaking careful and targeted interventions in the housing market and implementing the new Banking Executive Accountability Regime (BEAR).
The new funding as well as the reappointment of Mr Byres and appointment of a second Deputy Chair – Mr John Lonsdale – will support APRA in developing a stronger focus on accountability and enforcement in the financial system.
The Coalition Government continues to invest in our financial system regulators to ensure they are equipped with the resources and powers they need to enforce the law, improve community confidence and maintain the stability of the financial system.