Australia's prudential regulator said on Tuesday its first system-wide risk-stress test found close links between the country's banks and superannuation funds, highlighting potential vulnerabilities across the financial system.
Here are some details:
The Australian Prudential Regulation Authority (APRA) conducted its inaugural system risk-stress test in 2025 with the country's four major banks and six large superannuation funds.
The "Big Four" lenders are Commonwealth Bank of Australia ASX:CBA, National Australia Bank ASX:NAB, Westpac Banking Corp ASX:WBC, and ANZ Group ASX:ANZ.
Under the exercise, APRA asked institutions to test a severe liquidity shock, greater than anything major Australian banks have faced in 50 years.
The scenario also assumed superannuation fund withdrawals and switching above COVID-19 levels, along with an operational disruption at a material service provider.
The findings highlighted the resilience of Australia's financial system to liquidity and market shocks, with all participating institutions able to withstand the shock and rebuild liquidity over the test period, APRA added.
The regulator said the test exposed vulnerabilities across banks and super funds, including concentration risks, shared service-provider dependencies, liquidity pressures and the growing systemic impact of large super funds.
"APRA will use the findings to inform proposed amendments to bank liquidity requirements that we will consult on within the next 12 months," APRA chair John Lonsdale said.