This is likely to require financial institutions to focus on adequate funding liquidity over longer time horizons, as well as resilience to more demanding stress scenarios. In line with this, APRA has recently released for consultation proposals to enhance liquidity risk management by authorised deposit-taking institutions in Australia. Third, the regulatory perimeter is being extended.
The financial sector remains a prime target, and we cannot effectively mitigate the risk by simply mandating supervised entities to follow good practices. Complex attacks can be deployed via obscure tools.