The Australian Prudential Regulation Authority (APRA) has released its 2025-26 Corporate Plan, setting out priorities to strengthen the stability of banks, insurers, superannuation funds and the broader financial system.
The plan identifies four strategic objectives over the next four years: maintaining financial and operational resilience, responding to emerging risks, achieving the right regulatory balance, and improving APRA’s internal effectiveness.
Key initiatives over the coming 12 to 18 months include:
reinforcing cyber defences across regulated industries, with particular attention to artificial intelligence risks and geopolitical tensions
testing compliance with APRA’s new operational risk management standard (CPS 230);
updating governance standards
publishing the results of APRA’s first System Stress Test, which examines risks tied to links between the banking and superannuation sectors
increasing scrutiny of superannuation fund spending and reviewing governance practices at major investment platforms
releasing findings from its Climate Vulnerability Assessment of the general insurance sector
The regulator also plans to refine its framework to balance safety with efficiency and competition. Initiatives include formalising a third tier of proportionality in banking regulation, exploring ways to make reinsurance more affordable, and cutting redundant compliance requirements.
APRA Chair John Lonsdale (pictured) said the authority will keep its focus on resilience, while also stepping up efforts to simplify regulation and support competition. He added that APRA intends to invest in its data and technology infrastructure, alongside strengthening organisational capability and workplace culture.
“A strong and stable financial system is an essential prerequisite for economic growth,” Lonsdale said. “At a time of heightened global volatility, APRA will continue to focus on ensuring banks, insurers and superannuation trustees have the financial and operational resilience to withstand a sudden shock and continue delivering vital financial services to their customers.”
