The Reserve Bank of Australia (RBA) today released its March 2026 Financial Stability Review.

The Review highlights that risks to the global financial system have increased. The escalation of conflict in the Middle East has contributed to sharp movements in global financial markets, while the risk of operational, cyber and security disruptions is heightened.

The RBA finds that Australia’s financial system is well placed to handle an increasingly uncertain global environment.

• Most borrowers are in a solid financial position and remain able to manage increases in cost pressures, though some will face growing challenges.
• Australian banks are in a strong position to continue supporting the economy, even if conditions deteriorate sharply.

In this environment, it is important that financial institutions continue to build both resilience to liquidity, operational and geopolitical shocks and maintain prudent lending standards.

Source: Reserve Bank of Australia (2026) | Copyright and Disclaimer Notice | Original Article