Weekly Update: 24 October 2025

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Key News:

• APRA has released a consultation proposing a simpler, more transparent pathway for medium-sized banks to gain accreditation to use the internal ratings-based (IRB) approach to calculating credit risk.
• The ABA distributed a media release welcoming APRA’s move to streamline IRB accreditation.
• The ABA is working with members, the RBA and Treasury to monitor any impacts from the TWU industrial action affecting Armaguard services.

“APRA’s announcement today is a welcome early step towards implementing the Council of Financial Regulators’ recommendations for a more level playing field for small and mid-tier banks.”

–  ABA CEO Simon Birmingham. Media release, 23 October 2025.

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Political Update:

• RBA Governer Michele Bullock gave a speech at The Daily Telegraph’s Future Sydney: Bradfield Oration, Sydney Opera House.
  • On the Review of Merchant Card Payment Costs and Surcharging: “We are currently consulting on our preliminary views on potential regulatory changes that could be in the public interest, so I won’t discuss these issues further in this speech except to say we are going to take the time to get these changes right.”
  • On cash use: “The decline in the use of cash for transactions has put the cash distribution system under pressure. We are participating in discussions with the major banks, the broader industry and Government about how to evolve the operating model to support the future viability of cash.”
  • On Confirmation of Payee: “Innovation by payments providers can play a crucial role here. For instance, the new ‘Confirmation of Payee’ service that is being rolled out on the NPP represents an important industry collaboration to help to reduce certain types of scams.”

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Policy Update:

• The ABA participated in the NASC Advisory Committee meeting.
• Met with AUSTRAC to discuss key steps in AML/CTF reform implementation.
• Met with Home Affairs to discuss AML/CTF transitional rules.
• Participated in the AUSTRAC Finance sector Industry Forum.
• The ABA and members participated in APRA’s Briefing Session on IRRBB Parallel Run 2.
• The ABA’s Chief of Policy Chris Taylor spoke at the American Bankers Association’s Conference about Australia’s ecosystem approach to scam prevention.

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Regulatory Update

• The RBA has appointed Martin Thomas as General Counsel, leading their legal team.
• AFCA’s latest Annual Review highlights encouraging progress in the way banks support customers in hardship, with financial difficulty complaints falling 17% to 4,764.
• The ACCC issued a draft determination proposing to allow continued collaboration to support Australians’ access to cash.

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Coming up next week:

• Data:
  • 29/10: Consumer Price Index, Australia (ABS)
  • 30/10: International Trade Price Indexes, Australia (ABS)
  • 31/10: Producer Price Indexes, Australia (ABS)
  • 31/10: Financial Aggregates (RBA)
  • 31/10: International Reserves and Foreign Currency Liquidity (RBA)

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Upcoming Submissions:

Published submissions

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Events

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Selected Media

• News.com.au – ‘Essential’: RBA governor Michele Bullock backs in cash
• AFR – Amazon struggles to recover as major outage causes chaos
• Capital Brief – RBA governor Michele Bullock treads carefully on payment regulation
• The Guardian – Australia’s surprise unemployment spike suggests an economy not overheating but in need of stimulus
• AFR – Boom or bubble? Understanding Australia’s data centre surge

Warm regards,
The ABA Team

Weekly Update