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The Reserve Bank of Australia released its October 2026 Financial Stability Review on 1 October. It said Australia’s financial system remained resilient, with banks positioned to continue lending through a downturn and most mortgaged households and businesses able to manage more difficult conditions.
The review nevertheless identified mounting vulnerabilities tied to geopolitical tensions, global financial markets, artificial intelligence and disruption to critical service providers. It also noted pockets of household and business stress. The RBA called on financial institutions to strengthen their ability to withstand financial, operational and geopolitical shocks and to improve crisis preparedness.