APRA publishes findings of inaugural system risk stress test
Will use findings to inform proposed amendments to bank liquidity requirements that it will consult on within next 12 months - - Findings included test that highlighted system vulnerabilities that could amplify stress events, others - - The idiosyncratic liquidity shock banks faced in the SRST was recorded as severe. On average, banks modelled a decline in funding of about 15 per cent, or $170 billion.
Story updates
12:14:25 AM UTC
SquawkNews
On average, banks modelled a decline in funding of about 15%, or $170B. - The statement highlighted 5 key findings: 1. The SRST showed the resilience of the Australian financial system to market and liquidity shocks, and the features which underpin it. - 2. The SRST highlighted system vulnerabilities, such as those related to concentration, mismatched assumptions and common dependencies, that could amplify stress events. - 3. Superannuation funds can play a systemic role in the stability of the Australian financial system. How they respond in a stress event can materially affect banks, financial markets and superannuation fund members. - 4. Some vulnerabilities in the system are likely to increase as the superannuation sector continues to grow and mature. - 5. Better entity preparedness for stress events will make the financial system stronger. - Statement
This is a real-time flash headline. A verified provider body is not available, so SquawkNews does not present it as a full article.