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Banks welcome APRA commitments to support more competition in Australia’s banking system

Banks welcome APRA commitments to support more competition in Australia’s banking system

24 July 2025

The ABA welcomes APRA’s commitment to boosting competition for Australia’s mid-tier and international banks.

In a speech today to the ABA’s Banking 2025 Conference, Chair John Lonsdale announced that APRA would:

  • Formalise a three-tiered approach to proportionality in the framework for banking
  • Streamline, simplify and clarify accreditation processes allowing banks to use the internal-ratings based approach to calculating risk-weighted assets
  • Better communicate decisions on minimum capital requirements
  • Amend the bank licensing framework to improve transparency and efficiency.

ABA CEO Anna Bligh said it was customers who would ultimately benefit from a strong and competitive banking system.

“Today’s announcements from APRA will support Australia’s mid-tier and international banks to offer more competitive services for customers,” Ms Bligh said.

“These commitments will not reduce consumer protections, they are about making sure our smaller banks can focus on delivering better products and services to their customers.

“Having strong small and medium-sized banks in Australia is important for competition and customer choice.

“Our industry thanks APRA and the Council of Financial Regulators for their engagement throughout the review into small and medium-sized banks. “Banks stand ready to work with APRA to ensure these commitments are implemented effectively.”

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