The Reserve Bank of Australia (RBA) has published its October 2025 Financial Stability Review, which examines the current state and resilience of the country’s financial system.
According to the RBA, “Australia’s financial system remains well positioned to navigate a period of elevated global uncertainty.” The central bank identifies external factors as the primary risks to financial stability. These include high and increasing government debt in major economies, overvalued assets and leverage in international markets, and increased geopolitical and operational threats.
Despite these concerns, the RBA notes that domestic conditions are stable. “Most households with mortgages are keeping up with repayments and have built savings buffers,” the Review states. It also points out that “many businesses have established financial buffers.” Additionally, “Australian banks continue to maintain high levels of capital and liquidity, positioning them to support the economy through potential disruptions.”
The report emphasizes that it is important for financial institutions to uphold prudent lending standards and focus on strengthening their operational resilience.
