Featured Product

    APRA Outlines Strategic Work Priorities for Coming Years

    August 26, 2021

    The Australian Prudential Regulation Authority (APRA) published its corporate plan for 2021-25. The plan sets out the strategic priorities of APRA to protect bank deposit-holders, insurance policyholders, and superannuation members and focuses on preparing for future challenges. With respect to the initiatives of relevance for the banking sector, over the coming months, APRA plans to focus on completing the implementation of Basel III reforms, delivering on the 2020-2024 cybersecurity strategy, furthering the governance, culture, remuneration, and accountability (GCRA) work program, encouraging innovation in regtech and suptech, and developing advanced analytical capabilities.

    The corporate plan outlines the following key strategic priorities:

    • Preserve the resilience of banks. APRA will focus on completing the implementation of Basel III capital reforms as well as on maintaining scrutiny of credit and liquidity risks at individual bank and systemic levels. APRA will ensure that banks are operationally resilient, support the ongoing development of credible recovery plans by banks, and monitor banking industry cohorts by adopting targeted supervisory strategies, where appropriate. APRA will deliver on the 2020-2024 cybersecurity strategy with aim of strengthening cyber resilience. APRA will also continue to deliver on the GCRA work program with concentrated attention in certain areas, including finalizing and implementing prudential standard on remuneration (CPS 511) and strengthening prudential standards on risk management (CPS 220), governance (CPS 510), and fit and proper (CPS 520). 
    • Modernize the prudential architecture. Over the 2021–2025 plan horizon, APRA will modernize the prudential framework to make the prudential standards and guidance more accessible for industry, reduce burden, and encourage innovation in regtech and suptech. It will build capabilities to support digitization and better regulation, as well as adapt the architecture to cater for new and emerging risks from the evolving global and domestic financial landscape.
    • Enable data-driven decision-making. To achieve this strategic priority, in the short-term, APRA will deliver its new data collection infrastructure in the form of APRA Connect, and accelerate migration of continuing data collections from its legacy system (D2A) to the APRA Connect platform across all regulated industries. APRA will implement new data collections designed to collect more granular data, continue to pilot and apply applications of data science analytics techniques, and continue to work with other government agencies on opportunities to collect data once and share. APRA eventually intends to decommission D2A and further develop advanced analytical capabilities. APRA also plans to modernize its data publications by investing in tools to support more extensive external data sharing, both publicly and between government agencies.

    Over the 2021–2025 plan horizon, APRA will seek to ensure the Australian financial system is future-ready by:

    • Dedicating regulatory attention to the evolving financial landscape in Australia including understanding the impact of new financial activities and participants.
    • Helping to find solutions to current challenges, such as superannuation retirement income products, insurance accessibility and affordability for Australians, and the financial risks associated with climate change. APRA will continue its work on improving the understanding and managing of financial risks associated with climate change, to facilitate well-informed decision-making by regulated entities. This includes finalizing prudential guidance, conducting climate vulnerability assessments, data gathering and further engagement with Council of Financial Regulator (CFR) agencies, industry bodies, research organizations, and global regulatory peers.
    • Adopting the latest regulatory tools, techniques and practices in areas such as specialist regulatory services, enforcement actions, transparency, and resolution.


    Related Links

    Keywords: Asia Pacific, Australia, Banking, Corporate Plan, Strategic Priorities, Credit Risk, Basel, Liquidity Risk, Cyber Risk, Operational Risk, Governance, Climate Change Risk, ESG, Data Collection, APRA Connect, Regtech, Suptech, APRA

    Featured Experts
    Related Articles

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267