Nothing to see here. That's the message APRA chairman Wayne Byres is running to hose down a damning report into the failures of his organisation to police banks and protect consumers.

"The capability review is a helpful endorsement that we've identified the right priorities and we're on the right track," Mr Byres said in a teleconference to journalists.

"The report therefore doesn't call for a change of direction in our operations, it's more evolutionary, building on several programs of work already underway."

The report's authors, however, beg to differ.

"Change is necessary," they wrote.

While the Australian Prudential Regulation Authority has done well to avoid a bank collapse on its watch, the damaging revelations from the royal commission showed the regulator had been sorely deficient when it came to law enforcement.

The review criticised APRA for a lack of transparency, not appearing in public and not communicating effectively.

This then could have been an opportunity, a timely cue, to at least challenge that perception and turn over a new leaf.

Instead, APRA dropped the review late at night to a handpicked group of "interested" reporters and declined all interviews, before yesterday holding a teleconference behind closed doors instead of fronting a public press conference.

The irony apparently was lost on Mr Byres and his team.

That very propensity for secrecy was slammed in the review, as it was by the royal commission, which found the cosy relationship between APRA and the banks got in the way of clear-sighted regulation, leaving consumers exposed and billions of dollars out of pocket.

Stating the obvious the review found: "APRA has a strong preference to do things behind the scenes with regulated entities."

As far as the banks are concerned, their cooperation with APRA is a gift. In return, they expect secrecy and discretion.

They also expect a say in what penalties, if any, are meted out.

If its external reputation is in tatters, the regulator faces an equally challenging task internally. Morale is low, with APRA staff complaining that enforcement decisions have been overturned and financial institutions regularly went above their heads, dealing directly with senior management.

"When institutions are consistently able to get a different result by appealing to GM [general manager] levels and above, line supervisors become demoralised and institutions become emboldened to push the limits," one APRA staffer told the inquiry.

None of these findings appeared to faze Mr Byres.

The royal commission's final report in February highlighted that much is at stake for all Australians who rely on a stable and efficient financial system.

As commissioner Kenneth Hayne's train gathered speed, APRA tried to get on the front foot, attempting to reduce the glare from the royal commission by updating its corporate plan to "enhance leadership" and "lift capability".

However, as highlighted in this latest review, there are doubts APRA staff have the skills, culture or leadership to implement the changes.

Perhaps it is time for an APRA clear-out, a severing of the cosy relationships between poachers and gamekeepers, and a lot more sunlight to disinfect the organisation that let down so many.