Australia’s financial system remains well positioned to withstand a period of elevated global uncertainty, the Reserve Bank of Australia says in its October 2025 Financial Stability Review.
Releasing the twice-yearly assessment, the central bank identified the largest threats to financial stability as originating offshore, highlighting high and rising government debt levels in major economies, stretched asset valuations and leverage in global markets, and heightened geopolitical and operational risks.
At home, the RBA says households, businesses and banks are generally resilient. Most mortgage holders are keeping up with repayments and have built savings buffers, while many firms have also established financial cushions.
Australian banks continue to hold high levels of capital and liquidity, which the Review says positions them to support the economy through potential disruptions.
The RBA also underscores the need for lenders to maintain prudent lending standards and for financial institutions to bolster operational resilience.
The Financial Stability Review provides the RBA’s regular appraisal of risks to the financial system and the capacity of institutions and borrowers to manage them.
