Financial regulators remain confident Australia's banking system, including smaller banks, can ride out ructions in global financial markets.
The Australian Prudential Regulation Authority ramped up its monitoring regime after the collapse of Silicon Valley Bank and UBS's takeover of Credit Suisse.
While APRA's intensive supervision continues, its investigations have so far reinforced its belief Australian banks, including smaller banks, are well-capitalised and have access to enough liquidity.
Rapid action from regulators and authorities in the US and Europe has so far stabilised markets and improved confidence, although some volatility remains.
Treasurer Jim Chalmers said Australia was not immune to volatility in global financial markets.
"But Australians should be reassured that our banks are well regulated, well capitalised and highly liquid and are in a better position than most to deal with these disruptions," he said.
Dr Chalmers said actions taken by central banks and international financial authorities were working to calm markets.
"While we've seen some strains in global funding markets, our domestic funding markets continue to function well," he said.
