06/10/2026
Financial system well placed to handle shocks.
Australia is facing growing risks from overseas, but our financial system is in a strong position to handle them.
That’s one of the key messages from the Reserve Bank of Australia’s (RBA) latest Financial Stability Review.
The RBA is monitoring risks including geopolitical tensions, rising government debt in some major economies and the possibility of sharp corrections in global financial markets.
Closer to home, though, the picture is considerably more reassuring.
While financial pressure has increased this year, only around 2% of variable-rate owner-occupier borrowers currently have insufficient income to cover both mortgage repayments and essential expenses. Most of this group have enough savings to cover the shortfall for at least six months.
Mortgage arrears also remain around pre-pandemic levels, while less than 1% of borrowers currently owe more on their mortgage than their property is worth.
The RBA said most household borrowers remain well placed to manage ongoing cost pressures, despite higher rates and falling property prices.
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