The Australian Prudential Regulation Authority (APRA) has published its updated plan to reinforce the financial soundness of the banking, insurance and superannuation industries over the next four years.
As with last year’s version, the priorities in APRA’s new Corporate Plan for 2022-2023 are based around the twin themes of “protecting the community today”, as well as ensuring the Australian financial system is “prepared for tomorrow”.
In particular, the plan is designed to respond to rapid changes in APRA’s operating environment, including geopolitical tensions, inflationary pressures and rising interest rates, and the impact of new technologies.
Over the next four years, APRA will continue 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; and
- better enabling data-driven decision-making by APRA’s stakeholders.
APRA will ensure the financial system is prepared for the challenges of tomorrow by:
- increasing its focus on the evolving financial landscape in Australia including responding to the impact of new financial activities and participants;
- helping 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; and
- adopting the latest regulatory tools, techniques, and practices.
The Corporate Plan also outlines APRA’s goal of enhancing its own performance by fostering a modern, highly-skilled and flexible working environment.
APRA Chair Wayne Byres said: “Despite the economic challenges of the past two years, Australia’s financial system remains stable and resilient. 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,” Mr Byres said.
Copies of the latest Corporate Plan are available below: