APRA boss Wayne Byres to step down at end of October after 8 years amid regulatory reform

Amid regulatory reform of the multi-billion dollar banking sector, APRA chair Wayne Byres will step down at the end of October.

Australian Prudential Regulation Authority chairman Wayne Byres has announced he will step down at the end of October. (AAP Image/Sam Mooy)

The head of Australia’s banking regulator, which oversees more than $7.9 trillion in assets, will step down at the end of October after eight years at the helm, amid major regulatory reform.

Australian Prudential Regulation Authority chairman Wayne Byres said on Tuesday that his eight years in the top job had been an “honour and a privilege”, and that he was “pleased with what has been achieved by APRA in that time”.

Mr Byres, who has been with the banking, insurance and superannuation regulator since its inception in 1998, 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, I feel that now is a good time to hand over the chair’s role to someone new, who will lead the organisation on the next stage of its journey,” he said in a statement.

APRA oversees more than $7.9 trillion in assets held by depositors, policyholders, and superannuation fund members.

Jim Chalmers thanked Mr Byres for his “outstanding contribution to APRA and his dedicated service to Australia”.

“His leadership and expertise has positioned the Commonwealth 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,” the Treasurer said.

“He’ll be greatly missed but I wish him well,” Dr Chalmers said.

Mr Byres is the second leading figure in the financial system to leave this year, following the shock resignation of Reserve Bank deputy governor Guy Debelle in March.

Mr Byres resignation comes at a fraught time for the Australian economy and financial system, as the RBA aggressively hikes interest rates to tame runaway inflation, although analysts and policymakers believe the banks remain well capitalised to withstand any potential fallout from climbing mortgage defaults.

During Mr Byre’s tenure, APRA has claimed several scalps with several banks and insurers put on notice to lift internal standards and forced to hold large capital buffers.

Mr Byres deputies will remain in their roles at APRA, with each holding several years left of their five year terms.

APRA member Margaret Cole was only recently appointed to the regulator, after joining from PwC where she was the global regulatory leader.

Mr Byres was reappointed to the role of APRA chair in 2018 by then treasurer Josh Frydenberg amid criticism of the regulator after the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

In response to the Kenneth Hayne-authored report, APRA set to reshape its activities by 2023.

These included the implementation of the Banking Executive Accountability Regime, which allowed the regulator to warn bank bosses for questionable behaviour, as well as tightening up supervision around financial services.

His departure is expected to be a few weeks after APRA delivers its annual report and reveals its corporate plan for the years ahead.

My Byres’ last day will be October 30, and Dr Chalmers said “the Australian Government will undertake an open and transparent process to select the next APRA chair”.

Prior to joining APRA, Mr Byres served a stint in Geneva at the Bank of International Settlements, the bank for central banks which provides services and coordinates responses, which he had joined in 2011 after first leaving APRA.