Wayne Byres to step down as APRA chair

APRA chairman Wayne Byres has confirmed his intention to step down as head of the Australian Prudential Regulation Authority from October 30, 2022.

Byres was appointed as a member and chair of APRA from July 1, 2014, for a five-year term. On July 1, 2019, he was subsequently reappointed for a second five-year term.

In a statement on Tuesday, Treasurer Jim Chalmers confirmed Byres had advised the governor-general of his intention to step down. Following the Treasurer’s announcement, Byres issued a statement confirming his decision.

Thanking Byres for his “outstanding contribution to APRA” and his “dedicated service to Australia”, Chalmers said Byres would be greatly missed, but wished him well.

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“Throughout a long and distinguished career, Mr Byres has made a significant contribution to the Australian financial system and the global framework for prudential regulation,” Chalmers said.

Chalmers said Byres’ leadership and expertise had positioned the Commonwealth government to respond well to some of the greatest challenges in Australia’s history – most recently in ensuring the stability of the financial system during the COVID‑19 pandemic.

“Under Mr Byres’ leadership, APRA’s public profile has been strengthened through his commitment to transparency and communication – important in underpinning public trust in the security of Australia’s financial system,” Chalmers said.

Byres (pictured) said being chair of APRA had been an “honour and a privilege”.

“I’ve enjoyed the past eight years immensely, and I’m pleased with what has been achieved by APRA in that time,” Byres said.

“There is always more to do, but the financial system is stable, APRA’s leadership team is strong, and the organisation and its people are well-placed to continue to manage future challenges.”

Against that backdrop, Byres said he felt it was a good time to hand over the role of chair to someone new, who would lead the organisation on the next stage of its journey.

“Just as we expect the financial institutions, we regulate to carefully consider how they renew their leadership, the same applies to APRA. It has been a difficult decision to make, as there is much about APRA I will miss, but after eight years as chair, I believe the time is right,” Byres said.

“I have every confidence the organisation will continue to do great things for the Australian community.”

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Byres said he would continue to fulfill his usual obligations as chair and accountable authority for APRA until his departure on October 30.

“However, I would like to take the opportunity that today’s announcement provides to acknowledge my friends and colleagues in APRA, and across the public sector more broadly, for their unstinting support and cooperation. I have greatly appreciated their help.”

Byres worked for the RBA for more than a decade before he was seconded to the Bank of England in London. 

Byres transferred to APRA on its establishment in 1998, where he has held a range of senior executive positions, covering policy and supervisory divisions.

In late 2011, Byres left APRA to take up the role of secretary-general of the Basel Committee on Banking Supervision, holding this position until he returned to Australia in mid-2014.  

Byres has represented APRA on the Payments Systems Board, the Council of Financial Regulators, the Trans-Tasman Council on Banking Supervision, the Basel Committee and its oversight body, the Governors and heads of supervision.

Treasurer Jim Chalmers said the Australian government would undertake an open and transparent process to select the next APRA chair.

The Customer Owned Banking Association also acknowledged Byres' "significant contribution to banking regulation in Australia" and said under his leadership APRA had increased its focus on the impact of the regulatory compliance burden on smaller banks.

“On Wayne’s watch, APRA has become more conscious of examining where and how the regulatory burden falls,” COBA CEO Michael Lawrence said.

“In a recent speech the APRA chair highlighted the regulator’s efforts to adopt graduated approaches to avoid undue costs on smaller competitors, to introduce facilitative measures that promote more active competition and to simplify regulation to reduce compliance costs.

“Wayne’s leadership has seen a significant change for the better in how APRA operates. While we may have different views, Wayne has always been willing to listen and give us a fair hearing."

Lawrence said COBA wished Byres all the best for the future and "looked forward to working with the new APRA Chair to ensure the customer-owned banking sector can continue to grow and thrive to benefit more Australians".