Reserve Bank of Australia
The Reserve Bank of Australia (RBA) today released its October 2025 Financial Stability Review, providing a comprehensive assessment of the health and resilience of Australia's financial system.
The Review highlights that Australia's financial system remains well positioned to navigate a period of elevated global uncertainty.
The RBA views the largest risks to financial stability as coming from abroad:
- High and rising government debt levels in major economies.
- Stretched asset valuations and leverage in global markets.
- Heightened geopolitical and operational risks.
However, the RBA finds that Australian households, businesses and banks are well placed to weather most shocks:
- Most households with mortgages are keeping up with repayments and have built savings buffers.
- Many businesses have established financial buffers.
- Australian banks continue to maintain high levels of capital and liquidity, positioning them to support the economy through potential disruptions.
The Review also underscores the importance of financial institutions maintaining prudent lending standards and strengthening operational resilience.
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