Which organization regulates deposit-taking institutions for consumer protection?

The Australian Prudential Regulation Authority (APRA) is responsible for overseeing and regulating deposit-taking institutions, such as banks and credit unions, in Australia. Its primary focus is to ensure the safety and soundness of these financial entities, which directly impacts consumer protection. APRA's regulatory framework includes setting standards for capital adequacy, risk management, and compliance, helping to safeguard deposits and promote financial stability.

While the Australian Securities and Investments Commission (ASIC) also plays a vital role in consumer protection by regulating financial markets and protecting investors, its focus is broader, covering various financial services and corporate behavior rather than specifically regulating deposit-taking institutions. The Reserve Bank of Australia (RBA) primarily concerns itself with monetary policy and financial system stability, rather than direct consumer protection. Similarly, the Council of Financial Regulators serves as a coordinating body among financial regulators but does not engage in direct regulation of deposit-taking institutions.

Therefore, the role of APRA is critical and specifically tailored to consumer protection within the context of deposit-taking institutions, making it the correct choice.