Quarterly Statement by the Council of Financial Regulators – September 2023

Summary:

The Council of Financial Regulators (CFR) held its quarterly meeting on September 20, 2023, to discuss global and domestic financial stability risks, including the impact of Chinese economic uncertainties and rising interest rates on the Australian economy. The Council highlighted Australian households' and businesses' resilience to higher interest rates, but noted that the effects have been felt unevenly, with some borrowers struggling to keep up with mortgage payments. The meeting also covered macroprudential policy settings, cyber security threats, and climate change risks. Additionally, the Council discussed the importance of crisis management arrangements, financial institution resilience, and the potential benefits of a central bank digital currency. The meeting concluded with a review of the CFR's work program, priorities, and objectives to promote stability and effective regulation of the Australian financial system.