Banking Group Backs Growth-Focused Regulation
The Australian Banking Association welcomed Shadow Treasurer Tim Wilson's call for regulators to weigh economic growth more heavily.
Updated on Nov. 3, 2026 in Financial Services
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On 20 October, Shadow Treasurer Tim Wilson called on APRA and ASIC to place more emphasis on growth in their decisions. The Australian Banking Association welcomed the call and a focus on proportionate regulation for smaller and mid-sized banks.
Why it matters
The ABA argued that proportionate rules could help businesses access finance and create jobs. The statement represents the banking industry's position rather than any change to lending requirements.
The only dated figure is 20 October, when Tim Wilson made the call for APRA and ASIC to weigh growth more heavily. No figures on lending volumes, borrowing costs or regulatory capital were given, and the ABA did not specify which rules it would change.
The players
Australian Banking Association
The Australian Banking Association is the principal industry body representing banks operating in Australia, advocating on prudential and regulatory matters.
Tim Wilson
Tim Wilson is a Liberal Party politician who serves as Shadow Treasurer, responsible for opposition economic policy.
Simon Birmingham
Simon Birmingham is a former federal Liberal senator and minister who now serves as chief executive of the Australian Banking Association.
The details
Tim Wilson urged APRA, which oversees the financial soundness of banks, insurers and superannuation funds, and ASIC, which oversees financial services conduct and consumer protection, to give greater weight to growth. Simon Birmingham, ABA chief executive, said regulation should address genuine risks while supporting investment, and that the next step was translating the emphasis into practical measures.
Timeline
20 October: Tim Wilson calls on regulators to emphasise economic growth.
3 November: The Australian Banking Association publishes its statement welcoming the call.
Market Landscape
The debate sits within APRA's statutory mandate to protect the financial soundness of banks, insurers and superannuation funds, which the ABA's call would require it to balance more explicitly against growth. Any shift would affect how proportionate rules apply to smaller and mid-sized lenders competing with the major banks.
The statement does not change lending rules, so borrowing costs for households and small businesses are unaffected for now. Any future change to how regulators weigh growth would only reach customers if it is later translated into specific rules.
The takeaway
Regulatory debate over growth versus prudential safety tends to shape lending conditions only once it becomes formal rule changes, so watch for specific measures rather than statements of principle. Smaller lenders in particular should be tracked for whether proportionate treatment is actually introduced.
Further reading
For more on the sector, see Financial Services coverage across Australia.
Source note: This article includes information reported by Hawkesbury Gazette.
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