Statement by the Council of Financial Regulators – 20 March 2026
The Council of Financial Regulators (the Council) met on Friday, 20 March with the Treasurer and Assistant Treasurer, to discuss recent developments in financial markets and the global economy following the escalation of conflict in the Middle East. The Australian Competition and Consumer Commission (ACCC) also joined the Council’s discussion.
The Australian financial system has established a good degree of resilience and is well placed to navigate a high-risk international environment. Australian banks maintain strong levels of capital and liquidity, and, together with the wider industry, continue their work with CFR agencies to strengthen crisis preparedness arrangements.
The Council discussed the rapidly evolving international risk environment and potential implications for the Australian economy. The Council noted that while direct exposures of the Australian financial system to the Middle East were limited, a further deterioration of the geopolitical environment could heighten risks to financial stability and requires continuing vigilance.
Council members agreed their agencies would continue to actively engage with industry, and one another, in forming assessments of conditions in the Australian financial system.
Council of Financial Regulators
The Council is the main coordinating body for Australia’s financial regulators. There are four members: the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC), the Australian Treasury and the Reserve Bank of Australia (RBA).
The Governor of the RBA chairs the Council, and the RBA provides secretariat support. The Council facilitates cooperation and collaboration across member agencies, with the ultimate aim of promoting the stability of the Australian financial system and supporting effective and efficient regulation. In pursuing this aim, the Council also seeks to support competition in the financial system.
The Council is a non-statutory body and has no legal functions or powers separate from those of its individual member agencies. It is a forum for cooperation, underpinned by the commitment of its member agencies to be open, proactive and collaborative. It meets each quarter, or more often if required.