Statement by the Council of Financial Regulators – 1 October 2026
The Council of Financial Regulators (the Council) met with the Treasurer on Thursday, 1 October to discuss recent developments in global financial markets and operational resilience in the Australian financial system. The Australian Competition and Consumer Commission (ACCC) also joined the Council’s discussion.
The Council noted that longer-term bond yields have risen in many advanced economies amid rising inflationary pressures and increased demand for funding. While the developments in bond yields warrant ongoing monitoring, bond market functioning has remained orderly. The RBA provided its assessment of risks to financial stability, as published in today’s Financial Stability Review. The Australian financial system has a good degree of resilience and remains well placed to manage shocks. Nonetheless, in the current environment the Council reiterated its earlier messages on the importance of financial institutions continuing to strengthen their resilience to financial, operational and geopolitical shocks.
The Council also discussed operational resilience in the Australian financial system, including in relation to developments in artificial intelligence (AI). Council members noted that advances in frontier AI are increasing the complexity of cyber threats. CFR agencies and the ACCC continue to strengthen the resilience of their own critical systems and operations as technologies and threats evolve, including to address emerging AI-related threats. CFR agencies continue to engage closely with industry and government partners to strengthen operational resilience across the broader financial system.
The Council agreed that in the current environment, it will be important to closely monitor developments in financial markets and continue to meet on a more regular basis, if circumstances require.
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.