Has The Australian Prudential Regulation Authority Done Enough To Meet Its Legislated Objectives And Prepare Australia For The Next Financial Crisis?

This article examines APRA's performance against its legislated objectives and the policy rationales and legal theories underlying the supervision of prudential regulation and promotion of financial system stability. The article will investigate the prudential framework in place and actions taken by APRA in the period beginning January 2014 to the end of June 2018, focusing on APRA's oversight of residential property lending standards because the quality of these loans will be the single largest determinant of the future health of the Australian financial system. The current study's findings and broader evidence suggest that APRA's responses to ongoing lax and risky home lending standards were ad hoc, conservative, and reactive.