Featured Product

    APRA Announces Its Policy Priorities for 2019

    February 28, 2019

    APRA announced the annual policy priorities for 2019, outlining the areas of intended policy focus in the banking, insurance, and superannuation sectors. The near-term policy agenda will be shaped by APRA response to the Royal Commission into misconduct in the banking, superannuation, and financial services industry. The policy agenda also takes into account major developments such as the new Banking Executive Accountability Regime (BEAR) and other important industry trends.

    In the banking sector, APRA will progress its proposals to implement the Basel III capital reforms and give effect to its expectations for the "unquestionably strong" capital ratios for authorized deposit-taking institutions, to take effect in 2022. As part of the finalization of the Basel III reforms, APRA is considering changes to its overall approach to capital requirements to improve comparability, transparency, and flexibility in areas where the methodology of APRA is more conservative than the minimum international requirements. If APRA proceeds in this direction, the outcome would be significant "presentational" and calculation changes to a number of prudential standards, although these would not affect the quantum of capital required.

    APRA expects to consult on draft prudential standards for credit and operational risk (Prudential Standard APS 112 Capital Adequacy: Standardized Approach to Credit Risk and Prudential Standard APS 114 Capital Adequacy: Standardized Approach to Operational Risk) during the first half of 2019. Following this, in late 2019 or early 2020, APRA will consult on revisions to the Prudential Standard APS 113 Capital Adequacy: Internal Ratings-Based Approach to Credit Risk and Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book. These proposals will also incorporate any changes to the presentation of capital requirements that APRA is considering to improve comparability and transparency. In addition, APRA plans to update the Australian Prudential Standard APS 220 on Credit Risk Management, including recommendations related to valuations, as recommended in the final report of the Royal Commission. However, APRA has not yet determined the timeframe for proceeding with the recently released changes to international standards for market risk and it is unlikely that APRA will choose to be an early adopter of these reforms.

    Across general, life, and private health insurance (PHI), APRA intends to consult the industry on plans to apply the capital framework for life and general insurance to PHI, as part of Phase Three of its PHI roadmap. APRA also intends to release a discussion paper examining how the prudential framework for insurance may need to be modified in light of the new AASB 17 accounting standard on insurance contracts. In the area of superannuation, APRA plans to ensure that superannuation trustees are prepared to implement the new member outcome assessments from January 01, 2020 (including any amendments required by legislative changes). 

     

    Related Links

    Keywords: Asia Pacific, Australia, Banking, Insurance, Superannuation, Basel III, BEAR, Policy Priorities 2019, AASB 17, IFRS 17, APRA


    Featured Experts
    Related Articles
    News

    EBA Updates List of Validation Rules for Reporting by Banks

    EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.

    September 10, 2020 WebPage Regulatory News
    News

    EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework

    EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).

    September 10, 2020 WebPage Regulatory News
    News

    NGFS Advocates Environmental Risk Analysis for Financial Sector

    NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.

    September 10, 2020 WebPage Regulatory News
    News

    MAS Issues Guidelines to Promote Senior Management Accountability

    MAS published the guidelines on individual accountability and conduct at financial institutions.

    September 10, 2020 WebPage Regulatory News
    News

    APRA Formalizes Capital Treatment and Reporting of COVID-19 Loans

    APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.

    September 09, 2020 WebPage Regulatory News
    News

    SRB Chair Discusses Path to Harmonized Liquidation Regime for Banks

    SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.

    September 09, 2020 WebPage Regulatory News
    News

    FSB Workshop Discusses Preliminary Findings of Too-Big-To-Fail Reforms

    FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.

    September 09, 2020 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in September 2020

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.

    September 08, 2020 WebPage Regulatory News
    News

    OSFI Identifies Focus Areas to Strengthen Third-Party Risk Management

    OSFI published the key findings of a study on third-party risk management.

    September 08, 2020 WebPage Regulatory News
    News

    FSB Extends Implementation Timeline for Framework on SFTs

    FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.

    September 07, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5796