APRA Revises the Large Exposures Framework for Depository Institutions
APRA released a response paper setting out revisions to the prudential framework for large exposures of authorized deposit-taking institutions. APRA will require authorized deposit-taking institutions to implement most aspects of the revised Prudential Standard APS 221 Large Exposures (APS 221) by January 01, 2019. A transition period will be provided for provisions related to groups of connected counterparties and structured vehicles, allowing authorized deposit-taking institutions full implementation of the large exposures framework by no later than January 01, 2020.
The large exposures framework of APRA aims to limit the impact of losses when a large counterparty defaults and to restrict the potential for problems in one entity from spreading across the financial system. The core components of the new large exposures framework are:
- Reference to tier 1 capital as a basis for determining large exposures
- Recalibration of existing large exposure limits and the introduction of a lower limit on domestic systemically important bank (D-SIB) to D-SIB exposures
- Stronger set of requirements for measuring exposure values and for assessing groups of connected counterparties
Related Links
- Prudential Standard APS 221 Large Exposures (PDF)
- ARS 221 Forms and Instructions (PDF)
- Response Paper (PDF)
- April 2017 Consultation and Responses
Effective Date: January 01, 2020
Keywords: Asia Pacific, Australia, Banking, Large Exposures, APS221, ARS221, APRA
Previous Article
BCBS Discussion Paper on Regulatory Treatment of Sovereign ExposuresRelated Insights
|
News
OFR Adopts Data Collection Rule on Centrally Cleared Repo TransactionsOFR adopted a final rule to establish a data collection covering centrally cleared funding transactions in the U.S. repurchase agreement (repo) market.
February 20, 2019
WebPage
Regulatory News
|
|
News
FHFA Finalizes Rule on Federal Home Loan Bank Capital RequirementsFHFA published, in Federal Register, the final rule to adopt, as its own, portions of the regulations of the Federal Housing Finance Board pertaining to the capital requirements for the Federal Home Loan Banks.
February 20, 2019
WebPage
Regulatory News
|
|
News
SRB Publishes Framework for Performing Valuations in ResolutionThe framework provides independent valuers and the general public with an indication of the expectations of SRB on the principles and methodologies for valuation reports, as set out in the legal framework.
February 19, 2019
WebPage
Regulatory News
|
|
News
US Agencies Extend Consultation Period for the Proposed SA-CCRUS Agencies (FDIC, FED, and OCC) extended the comment period for a proposed rule to update their standards for how firms measure counterparty credit risk posed by derivative contracts.
February 18, 2019
WebPage
Regulatory News
|
|
News
FED Extends Consultation Period for Stress Testing RuleFED has published in the Federal Register a notice proposing amendments to the company run and supervisory stress test rules.
February 15, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: Third Update for February 2019EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.
February 15, 2019
WebPage
Regulatory News
|
|
News
SEC Proposes Rule on Risk Mitigation Techniques for Uncleared SBSSEC proposed a rule that would require the application of specific risk-mitigation techniques to portfolios of security-based swaps (SBS) that are not submitted for clearing.
February 15, 2019
WebPage
Regulatory News
|
|
News
FSB Report Examines Financial Stability Implications of FintechFSB published a report that assesses fintech-related market developments and their potential implications for financial stability.
February 14, 2019
WebPage
Regulatory News
|
|
News
US Agencies Amend Regulatory Capital Rule to Allow Phase-In for CECLUS Agencies (FDIC, FED, and OCC) adopted the final rule to address changes to credit loss accounting under the U.S. generally accepted accounting principles; this includes banking organizations’ implementation of the current expected credit losses (CECL) methodology.
February 14, 2019
WebPage
Regulatory News
|
|
News
FASB Proposes Taxonomy Improvements for the Credit Losses StandardFASB proposed the taxonomy improvements for the proposed Accounting Standards Updates on Targeted Transition Relief for Topic 326 (Financial Instruments—Credit Losses) and Topic 805 (on Business Combinations—Revenue from Contracts with Customers).
February 14, 2019
WebPage
Regulatory News
|
