Australian Prudential Regulation Authority chair John Lonsdale has outlined the regulatory body's initiatives aimed at preserving the financial security of Australians.
In a briefing to the Senate Economics Legislation Committee, Lonsdale highlighted the enduring strength and stability of Australia's financial system, stressing its essential role in the economy's overall health.
According to Lonsdale, APRA is diligently assessing various dynamics within the operational landscape to ensure the financial industry's steadiness and robustness. Among these considerations is the increasing cost of living, which is pressuring household incomes and expenditures.
Lonsdale's remarks also underscored the importance of the insurance sector, especially following significant storm events, in providing critical support during emergencies. This scenario has spotlighted the challenges related to insurance affordability and access, necessitating a unified approach among insurers, consumers, governments at all tiers, and regulatory bodies.
Addressing the threats of cyber attacks, scams, and geopolitical uncertainties, Lonsdale reaffirmed APRA's updated policy and supervision priorities. These include enhancing digital and cyber defences, drawing lessons from international banking upheavals, elevating superannuation trustee standards for retirement savings, and ensuring the insurance market balances sustainability with affordability and availability.
In his speech, Lonsdale delved into APRA's recent endeavours, including advancing the Superannuation Data Transformation project's second phase to enhance data collection on trustee governance and investment strategies. This effort aims to bolster transparency, mitigate underperformance, and reduce fees.
Moreover, APRA has maintained its macroprudential policy settings to support banking sector resilience and uphold stringent lending standards.
Lonsdale also reaffirmed APRA's investment in its workforce, noting a high engagement score that mirrors the organisation's dedication to its mission.
“APRA's success is dependent upon the capability and drive of its people, and we are strongly committed to maintaining an agile and engaged workforce. Results last month from APRA's annual engagement survey showed a strong engagement score of 80% favourable. This is consistent with the previous results from December 2022,” he said.
