The Reserve Bank of Australia (RBA) and the Australian Prudential Regulation Authority (APRA) have published an updated Memorandum of Understanding (MOU) aimed at strengthening their cooperation to support financial stability in Australia. The new agreement outlines the roles and responsibilities of both organizations in contributing to financial stability, as well as detailing procedures for consultation, liaison, and information sharing.
The MOU includes specific arrangements for coordination between the RBA and APRA regarding macroprudential policy, liquidity support, payments policy, and crisis management.
According to the joint statement: “Both the RBA and APRA have responsibilities in relation to financial stability in Australia, and it is therefore important that they continue to engage closely with one other. The RBA and APRA also cooperate and coordinate with each other and other regulatory agencies on a multilateral basis through the Council of Financial Regulators. The Council of Financial Regulators has today published an updated Charter.”
The Council of Financial Regulators serves as a forum for cooperation among key financial regulatory agencies in Australia. The updated Charter from the Council further clarifies how these bodies will work together.
