Former Treasury official Jon Lonsdale takes the reins from departing chair Wayne Byres
The Australian Prudential Regulation Authority has named a new chair to succeed the departing Wayne Byres. Jon Lonsdale, APRA deputy chair since 2018, steps into the top spot today.
Lonsdale said he was watching “very closely” a “small uptick” in non-performing loans, but said the overall delinquency rate was “quite low.”
“Over recent years, we watch all those metrics very, very closely, those core financial metrics,” Lonsdale said on a call after he was announced as the incoming APRA chair. “But in some pockets – small business would be an example – there’s a small uptick there.”
Lonsdale’s appointment comes amid other leadership changes at APRA. Margaret Cole, currently an APRA member, will become the deputy chair, while Suzanne Smith and Therese McCarthy Hockey will be promoted to the regulator’s board, The Australian reported.
“The challenges in front of us are significant – a rapidly shifting macroeconomic environment, rapid technological development that challenge business models and regulation, cyber threats, insurance affordability pressures, climate change and improving the performance of our superannuation systems, to name a few,” Lonsdale said. “Managing these challenges will deliver better outcomes to the Australian people.”
Prior to becoming APRA’s deputy chair in 2018, Lonsdale served as deputy Treasury secretary. In that position, he had responsibility for the financial system and consumer and foreing investment policy. Smith and McCarthy Hockey were responsible for APRA’s work in super and banking, respectively, The Australian reported.
APRA was sharply criticised during Byres’ tenure. A 2019 review identified significant issues at the regulator, including a lack of transparency. The review, chaired by former Australian Competition and Consumer Commission chairman Graeme Samuel, recommended changes in APRA’s structure and a stronger approach to enforcement.
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The review said that APRA’s low-key approach to engagement with banks, insurers and superannuation limited “its impact and authority.” It said the regulator needed to employ “a more strategic and forceful use of communication to ensure that it maximises its impact with regulated entities.”
Samuel told The Australian Friday that he didn’t feel APRA had adequately addressed the review’s findings.
“You would have thought a review of that nature would demand and merit careful introspection by APRA, but my perception is that didn’t take place,” he said.
Lonsdale said on Friday that the regulator has a strategy to respond to the current challenges in the financial system, The Australian reported.
“APRA’s strength is its diligent and committed people, who have a clarity of purpose and clear focus on ensuring the financial interests of Australians are protected and the financial system is stable, competitive and efficient,” Lonsdale said. “The members and I want to ensure we continue to build on this strength.”
