Statement by the Trans-Tasman Council on Banking Supervision – October 2024

The Trans-Tasman Council on Banking Supervision (TTBC) met in Sydney, Australia on 30 October 2024 to discuss matters related to Trans-Tasman bank supervision and regulation, the recent Trans-Tasman crisis simulation, operational resilience, and economic conditions.

TTBC members provided updates on recent policy changes made in each jurisdiction and expected in the coming year. The meeting included a discussion on economic conditions in New Zealand and Australia, noting the resilience of key economic indicators as well as the similarities and differences in respective economic cycles.

The Australian Prudential Regulation Authority (APRA) led a discussion on the recent Crisis Simulation which TTBC agencies participated in during September 2024. This simulation sought to ensure that TTBC agencies are better prepared for managing a bank failure. The outcomes of this simulation as well as lessons learned for future simulations and real-world crises events were noted by the Heads.

Throughout the year TTBC agencies have been working to update the TTBC’s Terms of Reference (ToR) and Memorandum of Cooperation (MoC) to reflect the needs of the present banking sector in both jurisdictions. The Heads approved the outcome of this review contained in the revised ToR and MoC. These updated documents have been published along with this annual statement.

Agencies also provided updates on other key workstreams including current reviews into the Banking Sector (Australian Treasury), developments in credit and lending (APRA, RBA and RBNZ), competition (Australian Treasury and New Zealand Treasury), and operational resilience (APRA and FMA).

Heads discussed the changing nature of risks affecting the stability of the financial sector including operational, cyber and geopolitical risks. The TTBC agreed to its work plan for 2025, which includes actions to strengthen cyber security and improve cyber incident preparedness. This work program will complement the ongoing bilateral engagement between TTBC member agencies.

The Australian Treasury chaired the TTBC in 2024 and will be handing over to the New Zealand Treasury to assume the chair of the TTBC at the start of 2025.

About the Trans-Tasman Council on Banking Supervision

The Trans-Tasman Council on Banking Supervision (TTBC) is a working group that aims to promote the coordination of trans-Tasman bank regulation and supervision. It is jointly chaired by the Secretaries of the Australian and New Zealand Treasuries. The TTBC’s membership also includes senior officials from the Reserve Bank of Australia (RBA), the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC), the Reserve Bank of New Zealand (RBNZ), and the New Zealand Financial Markets Authority (FMA).

The TTBC's terms of reference are available here.