RBA Warns of Financial Stability Risks From Private Market Boom

Australia’s central bank warned that a global shift of financing away from regulated banks and into private markets is making it harder for authorities to contain risks to the financial system, days after the nation’s corporate watchdog vowed to step up scrutiny of the sector.

“Changes in the nature of financial intermediation internationally, where more financing is occurring outside of prudentially regulated entities, is limiting the ability of authorities to monitor and address potential financial stability risks,” the Reserve Bank said in its 2025/26 corporate plan published Friday.