11 November 2021 - APRA sets out framework for using macroprudential tools to promote financial stability

APRA has outlined the framework it uses when assessing whether macroprudential intervention is appropriate, and which tool or combination of tools would best achieve its intended objective.

The paper 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.