The Reserve Bank of Australia (RBA) and the Australian Prudential Regulation Authority (APRA) have published an updated Memorandum of Understanding (MOU) to enhance their cooperation in supporting financial stability in Australia. The revised MOU clarifies the roles and responsibilities of both agencies regarding financial stability, as well as procedures for consultation, liaison, and information sharing.

According to the statement, the MOU includes arrangements for coordination between the RBA and APRA on macroprudential policy, liquidity support, payments policy, and crisis management.

Both agencies play key roles in maintaining financial stability in Australia. The RBA and APRA also work together with other regulatory bodies through the Council of Financial Regulators. The Council has released an updated Charter today.

"The updated MOU sets out the RBA and APRA’s respective roles and responsibilities for contributing to financial stability, as well as arrangements for consultation, liaison and information sharing between the two agencies. The MOU also sets out specific arrangements for coordination between the RBA and APRA in relation to macroprudential policy, liquidity support, payments policy and crisis management."

"It is therefore important that they continue to engage closely with one other. The RBA and APRA also cooperate and coordinate with each other and other regulatory agencies on a multilateral basis through the Council of Financial Regulators."