Financial Stability

The RBA is responsible for contributing to the stability of the Australian financial system.

Maintaining financial stability means the financial system can support the economy by reliably providing the financial services that households and businesses depend on, both in good times and bad.

This is important because of the role that the financial system plays in the everyday lives of Australians. It helps households and businesses to save, borrow, invest, insure, make payments, manage financial risk and plan for the future. A stable financial system is a critical foundation for the economic prosperity and welfare of the Australian people, which is the overarching objective of the RBA.

The RBA doesn’t do this alone. It works closely with the Council of Financial Regulators to:

• identify and monitor risks and vulnerabilities in the financial system
• coordinate policies to address these risks and vulnerabilities
• ensure there are arrangements in place to manage a crisis.