On 30 June 2026, the Australian Prudential Regulation Authority (APRA) published the findings of its inaugural System Risk Stress Test (SRST), which focused on links between the banking and superannuation system. The SRST took place last year and covered four major banks and six large superannuation funds and examined how a hypothetical “severe but plausible” shock might impact the financial system.
Key findings
Key findings include:
- The SRST showed the resilience of the Australian financial system to market and liquidity shocks, and the features which underpin it. All participating banks and superannuation funds were able to withstand the shock resulting from the severe SRST scenario.
- The SRST highlighted system vulnerabilities, such as those related to concentration, mismatched assumptions and common dependencies, that could amplify stress events. The exercise also highlighted risks inherent in shared material service providers. If a material service provider is disrupted, it could limit how quickly entities can undertake liquidity and risk‑management actions and therefore amplify stress.
- Superannuation funds can play a systemic role in the stability of the Australian financial system. How they respond in a stress event can materially affect banks, financial markets and superannuation fund members.
- Some vulnerabilities in the system are likely to increase as the superannuation sector continues to grow and mature. APRA will continue to focus on how these vulnerabilities evolve as the superannuation system matures. This includes the risk implications as more members move into the retirement phase, and the evolution of foreign exchange risks with growing overseas investment.
- Better entity preparedness for stress events will make the financial system stronger. The SRST highlighted that stress testing capabilities of superannuation funds need to develop to be commensurate with the sector’s systemic footprint.
Next steps
APRA will use the findings to inform proposed amendments to bank liquidity requirements that it will consult on within the next 12 months, as well as core supervisory activities for banks and super funds.