The Australian Prudential Regulation Authority (APRA) has published an information paper setting out APRA’s framework for the use of macroprudential policy measures to promote the stability of Australia’s financial system. It covers the risk factors APRA uses to identify emerging threats to financial stability, the policy tools APRA can choose from, and the importance of consulting with other members of the Council of Financial Regulators as part of the decision-making process.
The information paper is available below: