Featured Product

    APRA Consults on ARS 720.1, Finalizes Licensing Approach

    August 11, 2021

    The Australian Prudential Regulation Authority (APRA), the Australian Bureau of Statistics (ABS) and the Reserve Bank of Australia (RBA) issued a letter to consult on changes to ARS 720.1, the reporting standard on ABS/RBA loans and finance leases. APRA proposed to amend ARS 720.1 to accurately align with the latest version of APS 220, the prudential standard on credit risk management that was published in December 2019. The comment period for this consultation ends on September 07, 2021 and the changes are proposed to be effective from January 01, 2022. Thus, APRA will delay implementing the November 2020 updates to ARS 720.1 until this time. In addition, APRA finalized the revised approach to licensing and supervising new authorized deposit-taking institutions, thus publishing the response paper on the proposed approach, the final information paper, and two guidelines on licensing for locally incorporated institutions and overseas banks.

    The revised approach to licensing follows a review of the existing licensing regime for the authorized deposit-taking institutions and aims to incorporate lessons learned since the launch of the restricted institution licensing pathway in 2018. Post consultation, the final position of APRA remains largely consistent with its original proposals, with the most significant clarifications relating to milestones in the progression of a license application. Under the finalized approach: 

    • Restricted institutions must achieve a limited launch of both an income-generating asset product and a deposit product before being granted a license.
    • There is increased clarity about capital requirements at different stages for new entrants, aimed at reducing volatility in capital levels and facilitating a transition to the methodology for established authorized deposit taking institutions over time.
    • New entrants are expected to have a more advanced contingency plan to respond to financial stress, including an option to execute the authorized deposit taking institution's orderly and solvent exit from banking business.

    The new approach comes into effect immediately, although much of the information package is simply a formalization of existing practice. APRA also published guidelines on licensing for locally incorporated institutions and overseas banks. These guidelines are intended to assist entities in navigating the licensing process. The guidelines outline the licensing process, the type of support and guidance applicants can expect to receive from APRA, the minimum criteria to be addressed by applicants under the restricted and direct licensing pathways, and the minimum supporting information APRA expects with applications, for applicants to demonstrate they have met the relevant prudential requirements to be granted a license. 

     

    Related Links

    Comment Due Date: September 07, 2021

    Keywords: Asia Pacific, Australia, Banking, ARD 720.1, APS 220, Credit Risk, Licensing Regime, Reporting, EFS, Data Collection, APRA

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514