It’s horrible to watch as APRA’s head zombie regulator, Wayne Byers, shuffles along after a revving house price Ferrari. Check out this brain eating garbage yesterday from the man that should have been unceremoniously sacked after the Hayne Royal Commission exposed total APRA failure in the mortgage and wider banking market:
The Australian Prudential Regulation Authority (APRA) has published its updated Corporate Plan with a sharpened focus on regulating non-financial risks and improving outcomes for superannuation members.
The Corporate Plan for 2019-2023 sets out a roadmap for reinforcing APRA’s strong track record of safeguarding financial stability, while lifting its capabilities in other key areas to better address emerging and future challenges.
The content of the plan has been influenced by the findings of six separate reviews and inquiries over the past 18 months that examined aspects of APRA’s regulatory approach and performance, including the financial services Royal Commission and recent Capability Review.
In response, APRA’s new Corporate Plan has identified four areas of strategic focus aimed at strengthening outcomes for the Australian community:
- maintaining financial system resilience;
- improving outcomes for superannuation members;
- improving cyber-resilience across the financial system; and
- transforming governance, culture, remuneration and accountability across all regulated financial institutions.
APRA Chair Wayne Byres said the new Corporate Plan was designed to ensure APRA could respond faster and more effectively to meet the challenges of a rapidly evolving financial environment.
“Australia’s financial system remains in good health, but we can’t take that for granted. As macroeconomic and geopolitical risks play out, as technological innovation transforms the industry, and as new risks such as cyber and climate change grow, we must have the right skills and resourcing to continue protecting bank depositors, insurance policyholders and superannuation members.
“The new Corporate Plan acknowledges increased expectations of APRA, and fulfils the recommendations of the Royal Commission and Capability Review. Amongst other things, we will place greater emphasis on the supervision of ‘non-financial risks’ such as culture and accountability, and take a “constructively tough” enforcement approach when breaches of our prudential standards occur,” Mr Byres said.
In order to deliver on APRA’s strategic priorities, the Corporate Plan also identifies a number of key areas where APRA will focus on lifting its internal capabilities over the next four years:
- improving and broadening risk-based supervision;
- improving our resolution capability;
- improving our external engagement and collaboration;
- transforming our data-enabled decision-making; and
- transforming our leadership, people and culture.
Mr Byres said: “APRA is well aware of the heightened expectations of the organisation, and will be regularly reporting on the progress we are making in delivering better community outcomes across the four areas of strategic focus we have called out.
“Although it is ultimately up to financial institutions to strengthen community trust in the industry, regulators have an important role to play. In delivering on this Corporate Plan, APRA will be better equipped to ensure the entities we regulate are not only financially resilient, but also have frameworks, systems and cultures in place designed to reduce the risk of misconduct and poor consumer outcomes.”
Zzzzzzzzzzzzzzzzzzzzzzzz…..
And what is APRA doing about whatever its macro mandate is? What is its reaction function for house prices that have begun to rise again? What is its next plan for macroprudenital tools if house prices run away? How will it integrate with the RBA after the last cycle rate cut cycle exposed a disastrous schism between the two? What will it do if house prices rise, inflation remains weak, the RBA cuts and other central bank cuts keep the AUD high?
These are the ONLY questions that matter to the APRA’s role in the national interest. The above dot points are zombie-drooling, motherhood clap trap.
It is a staggering outcome that the number one legacy of the Hayne Royal Commission is an undead regulator that is already shuffling blindly towards precisely the same outcome that required the investigation in the first place.
