The Australian Prudential Regulation Authority (APRA) authorized IBA Group Pty Ltd as a restricted authorized deposit-taking institution under the Banking Act 1959. APRA also launched two consultations: one proposes to update bank prudential disclosures to align with international standards via the prudential standard on public disclosure (APS 330) while the other proposes new remuneration disclosure and reporting requirements for all APRA-regulated entities. The proposed remuneration requirements will support the cross-industry prudential standard on remuneration (CPS 511). The comment period for both the consultations will end on October 07, 2022. The proposed remuneration disclosure and reporting requirements will take effect after the implementation of CPS 511 in 2023 for large entities and 2024 for smaller entities.
The consultation on APS 330 for bank disclosures provides an overview of APRA’s proposals to update disclosure requirements for locally incorporated banks. It sets out the key objectives of the revisions and outlines the proposed updated requirements. In summary:
- The proposed revisions to APS 330 will align with updated international standards for public disclosure set by the Basel Committee and with APRA’s Unquestionably Strong reforms to the bank capital framework.
- APRA will produce a new centralized publication of prudential metrics, which will provide market participants access to key prudential data points across all locally incorporated authorized deposit-taking institutions in a way that is easier to compare and analyze than standalone individual disclosures.
- APRA plans to remove disclosure requirements for smaller authorized deposit-taking institutions, using the centralized publication to promote transparency and reduce regulatory requirements for this cohort of the industry.
The proposed changes will provide better disclosures for the larger, more complex banks and enable market participants to more easily compare authorized deposit-taking institution risk profiles and capital positions across the industry; in turn, this will promote greater transparency and accountability on all authorized deposit-taking institutions to conduct their activities in a safe, sound, and efficient manner. APRA intends to finalize APS 330 in 2022, providing the institutions with 12 months to implement
the requirements before the effective date of January 01, 2024. APRA also proposes to update the current APS 330 to bring forward the removal of disclosure requirements for smaller authorized deposit-taking institutions to January 01, 2023.
- News on IBA Group Pty Ltd
- Press Release on Prudential Standards
- Consultation and Draft Standards on CPS 511
- Consultation and Standard on APS 330
Keywords: Asia Pacific, Australia, Banking, Remuneration, Disclosures, CPS 511, Reporting, APS 330, Basel, Regulatory Capital, CRS 511, Operational Risk, Pillar 3, APRA
Previous ArticleChinese Authorities Publish Multiple Regulatory Updates for Banks
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.