The central bank has completed the success of its macro-prudential interventions, with the strict regulatory organization promising to tie in with non-monetary behavior.
The bank's deputy governor, Guy Debel, said that the central bank's intervention in 2014 and 2017 for domestic investors and home equity investors has successfully reduced the risk of a sharp and disruptive exchange of Australian house prices.
"The measures helped reduce the risk of raising new capital, and as a result this was due to increased vulnerability in the household sector and improved the economy's resilience to future shocks," Debel told an event held by the FINSIA professional standards firm in Melbourne on Thursday.
Mr. Debel received loans that tightened but declined the prospect of a looming credit crisis saying that although it slowed to 5 percent, "I have not seen a credit crunch when lending has increased by 5 percent before."
Some of the growth was being captured by lenders who are not banks or shadow banks but Mr. Debel warned lenders not to go non-bankers lenders for cheaper loans, implying loose credit standards were the main attraction.
"They are subject to the same type of financing costs and pressures as, or even more so, by the increase in BBSW than in the banking sector … They are not a cheap source of credit … its not borrowers who walk away from banks and goes to them because there is cheaper loan, said.
At the same event, the Australian Federal Inspection Authority and the Austrian Securities and Investment Commission admitted that they were not perfect and promised to get tough with the ingredients, to mark additional interventions and other enforcement actions during the next calendar year.
"May lead to formal enforcement"
APRA has warned banks and financial institutions that the regulator is re-examining cases of improper conduct investigated by the Royal Commission Wine will prosecute the offending companies if necessary.
The new APRA deputy chairman, John Lonsdale, said the regulator was examining evidence issued by the Royal Commission and would act when the information was new or contradicted what had been said earlier.
"This process will continue into 2019, and may also lead to formal enforcement action, if we consider it justified," said Mr. Lonsdale.
ASIC and APRA were devoured by the Commissioner of Wine for their cooperative approach to regulation in his interim report, saying that willingness to negotiate could not be the starting point and that the regulator speaking quietly was effective only when carrying a big stick.
When Mr. Lonsdale asked a question from the floor about what the regulator had done over the last ten years he answered briefly, saying "We did our job."
"Most people in the APRA focus on good positive results and I think it happened … we can improve our enforcement I think the answer is yes … I think the APRA is undergoing a revolution not in evolution"
The APRS of Mr. Lonsdale, a veteran finance clerk before his appointment, said the regulator wanted to prepare financial institutions for the prospect of economic downturn, highlighting the 27 years of sustained economic expansion saying "no summer lasts forever."
As part of Mr. Lonsdale's role, he will closely examine crisis management, including the "recovery or decision" programs.
Recovery refers to the re-rehabilitation of a bank or financial institution that has become pressured and rehabilitates its financial assistance. A decision takes place when the institution is beyond the APRA steps help to manage its "orderly failure".
ASIC's price confirmed this will be a closer look at the superannuation sector with more site visits, participate in more enforcement actions and implement a higher level of testing on the data sets it collects and has access to.
Mr. Price also defended the regulator's enforcement record, but said it was not perfect.
"My reading in the interim report is that the Inspector's concern is around the point of departure was too often by informational and education or alternatively negotiations and settlement," he said.
"ASIC has to start its regulatory work with the question 'Why not argue?' And with hindsight that is not an unreasonable view."