The Australian Prudential Regulation Authority (APRA) has released the findings of its latest stakeholder survey, revealing that an overwhelming 97 per cent of banks, insurers, and superannuation trustees believe APRA’s supervision is beneficial to their industries.
Conducted as part of a biennial initiative, the survey provides critical insights into how APRA’s regulatory approach is perceived within the financial sector. It aims to assess the effectiveness and impact of its regulations, as well as the perceptions surrounding APRA’s processes and communications.
For the 2025 survey, APRA gathered feedback from 262 financial services entities, achieving a response rate of 70 per cent, an increase from 67 per cent in 2023.
Among the key findings, 93 per cent of respondents indicated that APRA’s supervision has enhanced the financial and operational strength of their organisations. Furthermore, 96 per cent noted a positive effect on their risk management practices, while 82 per cent felt that APRA’s prudential requirements have positively influenced their financial management. Additionally, 74 per cent of participants believe that APRA offers adequate opportunities for industry consultation regarding proposed changes to prudential standards or guidance.
However, opinions were more divided regarding the cost and compliance burden associated with APRA’s regulatory frameworks. While 68 per cent asserted that APRA effectively seeks a balance between financial safety and other considerations such as efficiency and competition, only 24 per cent contended that changes to APRA’s prudential framework adequately take into account the costs of regulation imposed on the industry.
APRA Chair John Lonsdale stated that the Stakeholder Survey serves a vital role in shaping APRA’s approach to supervision and policy development.
“At a time of great international volatility and economic uncertainty, it’s important the Australians can rely on the financial and operational resilience of our banking, insurance and superannuation sectors. It’s clear the entities we supervise also see the value in what we do to protect financial stability and to improve risk management in their organisations. We welcome their continued endorsement.
“We are also aware of the need for us to strike the right balance between financial safety and not unnecessarily burdening industry in a way that lessens competition and productivity – a message that once again our regulated entities want to remind us about. These reflections, alongside feedback we receive from our stakeholders across industry, government and regulatory sector, are contributing to our thinking as we develop our priorities for next financial year in an environment of heightened risk,” Mr Lonsdale added.
