Featured Product

    APRA Outlines its Policy Priorities for 2018

    January 31, 2018

    APRA released an information paper that outlines its policy priorities for 2018 in the areas of banking, insurance, and cross-industry initiatives. The paper mainly describes priorities of APRA for 2018 with respect to the prudential policy framework.

    In the banking sector, APRA expects to

    • Consult on conceptual framework for Basel III capital and other changes, in the first half of 2018, in line with the final components of the BCBS-published revisions to the risk-based capital framework; this includes subsequent individual consultations on specific prudential standards over the course of 2018 and 2019.
    • Finalize counterparty credit risk framework and consult on leverage ratio requirements for authorized deposit-taking institutions in the first half of 2018
    • Consult on credit risk management (APS 220) in the second half of 2018
    • Consult and finalize by 2019 the standardized approach to credit risk capital (APS 112), advanced approach to credit risk capital (APS 113), measurement of capital (APS 111), and related part exposures (APS 222)
    • Introduce a minimum leverage ratio requirement for authorized deposit-taking institutions, consistent with the Basel III framework. APRA will commence consultation in early 2018, with a view to finalizing the prudential standard Prudential Standard APS 110 Capital Adequacy in late 2018 or early 2019. 

    In the insurance sector, APRA intends to update aspects of the reinsurance framework for life insurers, including approval requirements for certain types of reinsurance arrangements under Prudential Standard LPS 230 on Reinsurance and the treatment of exposures to offshore reinsurers under Prudential Standards LPS 114 on Capital Adequacy in relation to Asset Risk Charge and Prudential Standard and LPS 117 on Capital Adequacy in relation to Asset Concentration Risk Charge.  APRA will also consider whether any policy changes are needed to address the upcoming implementation of the Australian Accounting Standards Board’s AASB 17 Insurance Contracts. Over the medium term, APRA expects that changes to the prudential framework for insurance may be needed to address issues with the provision of life insurance in superannuation as well as potential innovative post-retirement products. APRA does not anticipate consulting on these issues in 2018, unless Australian Government priorities necessitate.

     

    Related Links

    Keywords: Asia Pacific, Australia, Banking, Insurance, Basel III Finalization, Policy Priorities 2018, Capital Adequacy, APRA

    Featured Experts
    Related Articles
    News

    APRA Announces Deferral of Capital Reform Implementation

    APRA announced that it is deferring the scheduled implementation of Basel III reforms in Australia by one year.

    March 30, 2020 WebPage Regulatory News
    News

    IFRS Publishes Statement on Its Work During the COVID-19 Crisis

    IFRS, in its statement, emphasized that it shares global concerns about the impact of COVID–19 and is supporting its stakeholders by reconsidering timelines of its meetings and publications, providing information on the application of IFRS 9 on financial instruments, and offering calendar updates on ongoing activities.

    March 27, 2020 WebPage Regulatory News
    News

    US Agencies Announce Changes to SA-CCR and CECL Rules Due to COVID-19

    In light of the recent disruptions in economic conditions due to the COVID-19 outbreak, US Agencies (FDIC, FED, and OCC) announced two actions to allow banking organizations to continue lending to households and businesses.

    March 27, 2020 WebPage Regulatory News
    News

    IAIS Adjusts Work Program to Address Impact of COVID-19 on Insurers

    Considering the impact of COVID-19 outbreak, IAIS announced initial adjustments to its work program to provide operational relief to its member supervisors, insurers, and other stakeholders.

    March 27, 2020 WebPage Regulatory News
    News

    OSFI Announces Regulatory Adjustments to Support COVID-19 Efforts

    OSFI published three targeted industry letters that announce a series of regulatory adjustments to support the financial and operational resilience of federally regulated banks, insurers, and private pension plans in the light of COVID-19.

    March 27, 2020 WebPage Regulatory News
    News

    UK Regulators Announce Measures to Address Impact of COVID-19

    UK Regulatory Authorities published statements and guidance addressed to financial entities on dealing with the impact of the coronavirus (COVID-19) outbreak.

    March 26, 2020 WebPage Regulatory News
    News

    ISDA and Industry Request Delay in Timeline for Initial Margin Rules

    Considering the challenges posed by the COVID-19 pandemic, ISDA submitted a letter on behalf of 21 industry associations and their members requesting BCBS, IOSCO, and global regulators to suspend the current timeline for the initial margin phase-in.

    March 26, 2020 WebPage Regulatory News
    News

    FCA, FRC, and PRA Issue Joint Statement to Address Impact of COVID-19

    In response to the COVID-19 outbreak, FCA, the Financial Reporting Council (FRC), and PRA have announced a series of actions and made statements to support the continued functioning of capital markets in the UK.

    March 26, 2020 WebPage Regulatory News
    News

    EC Rule Corrects Regulation Supplementing Solvency II Directive

    EC published the EU Delegated Regulation 2020/442, which corrects the EU Delegated Regulation 2015/35 that supplements Solvency II Directive (2009/138/EC).

    March 26, 2020 WebPage Regulatory News
    News

    FED and FFIEC Offer Reporting Relief to Institutions Due to COVID-19

    FED and FFIEC announced regulatory reporting relief to financial institutions due to disruptions caused by the COVID-19.

    March 26, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4900