Featured Product

    APRA Submission on Proposed Legislation on Crisis Resolution Powers

    December 18, 2017

    APRA published its submission to the Senate Economics Legislation Committee's Inquiry into the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017. The submission outlines key reforms in the proposed legislation. The proposed legislation is intended to ensure that the crisis management powers of APRA are fit-for-purpose, in the context of challenges that could emerge in the future.

    The powers of APRA need to be able to be applied, in a proportionate manner, to the diverse population of financial institutions that APRA supervises. Although the proposed legislation draws on international standards for resolution regimes, these standards are adopted in a manner that is appropriate for the Australian financial system and consistent with the APRA mandate, including the core objective of protecting the interests of depositors and policyholders. APRA is focused on improving the crisis preparedness of its regulated industries in coming years, through developing its framework for recovery and resolution planning. The proposed legislation will help facilitate this and will provide APRA with a clear mandate to set formal prudential requirements for resolution planning and, where necessary, to require an institution to take preparatory measures to address barriers to its resolution, during normal times. The reforms are intended to:

    • Enhance statutory and judicial management regimes of APRA to ensure their effective operation in a crisis
    • Enhance the scope and efficacy of existing directions powers of APRA and improve its ability to implement a transfer under the Financial Sector (Business Transfer and Group Restructure) Act 1999 (Transfer Act)
    • Ensure the effective conversion and write-off of capital instruments, in accordance with the prudential standards
    • Enhance stay provisions to ensure that the exercise of APRA’s powers against one entity in a group does not trigger adverse rights under contracts of other relevant entities in the same group
    • Enhance ability of APRA to respond when an Australian branch of a foreign regulated entity may be in distress
    • Enhance the efficiency and operation of the Financial Claims Scheme and ensure that it supports the crisis resolution framework
    • Enhance and simplify powers of APRA in relation to the wind-up or external administration of regulated institutions, and other related matters
    • Ensure that APRA has clear powers to make appropriate prudential standards on resolution planning and to require institutions to take measures to improve their preparedness for resolution, where appropriate

     

    Related Link: APRA Submission (PDF)

     

    ​Keywords: Asia Pacific, Australia, Banking, Recovery and Resolution Framework, Crisis Management Framework, APRA

    Featured Experts
    Related Articles
    News

    APRA Reviews Repayment Deferral Plans, Identifies Best Practices

    APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.

    September 22, 2020 WebPage Regulatory News
    News

    ESAs Assess Risks to Financial Sector After COVID-19 Outbreak

    ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.

    September 22, 2020 WebPage Regulatory News
    News

    BoE Confirms Withdrawal of COVID Corporate Financing Facility

    BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.

    September 22, 2020 WebPage Regulatory News
    News

    ECB Allows Temporary Relief in Leverage Ratio Amid COVID-19 Pandemic

    ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.

    September 21, 2020 WebPage Regulatory News
    News

    ESAs Launch Survey on Templates for Product Disclosures Under SFDR

    ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).

    September 21, 2020 WebPage Regulatory News
    News

    ECB Proposes Integrated Reporting Framework to Reduce Burden for Banks

    ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.

    September 21, 2020 WebPage Regulatory News
    News

    EC Deems UK Framework for CCPs Temporarily Equivalent to EMIR Rules

    EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).

    September 21, 2020 WebPage Regulatory News
    News

    EBA to Phase Out Guidelines on Loan Repayment Moratoria

    EBA has decided to phase out the guidelines on legislative and non-legislative moratoria of loan repayments, in accordance with the earlier specified end of September deadline.

    September 21, 2020 WebPage Regulatory News
    News

    EBA Provides Opinion on Definition of Credit Institution in CRR

    EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).

    September 18, 2020 WebPage Regulatory News
    News

    ECB Finalizes Methodology to Assess CCR and A-CVA Risk of Banks

    ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.

    September 18, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5820