APRA and RBNZ complete joint Trans-Tasman bank stress test

The Australian Prudential Regulation Authority (APRA) and the Reserve Bank of New Zealand (RBNZ) have completed the 2026 Trans-Tasman Stress Test, marking their first joint exercise since 2017. The goal of the coordinated effort was to enhance cross-border regulatory collaboration and improve financial stability while reducing the regulatory burden on participating banks.

The results indicate that the banking systems in both nations would remain resilient even during a severe economic downturn. The stress test simulated several high-impact scenarios, including an escalation in regional geopolitical tensions, a sharp oil price shock, a deep recession, a cyber-attack on offshore operations, and a significant fall in property prices.

Despite hypothetical substantial loss levels and pressure on capital and liquidity, the simulation showed that banks would continue to provide credit to households and businesses throughout the stress period.