Featured Product

    APRA Announces Deferral of Capital Reform Implementation

    March 30, 2020

    APRA announced that it is deferring the scheduled implementation of Basel III reforms in Australia by one year. APRA also confirmed its regulatory approach to the Term Funding Facility announced by the Reserve Bank of Australia (RBA). APRA will allow authorized deposit-taking institutions to include the benefit of the initial allowance in the calculation of the Liquidity Coverage Ratio, Minimum Liquidity Holdings Ratio, and Net Stable Funding Ratio from March 31, 2020, to the extent that they have the necessary unencumbered collateral to access the facility. APRA will provide further details to authorized deposit-taking institutions once RBA finalizes its operational requirements for the Term Funding Facility.

    The APRA decision to defer implementation of Basel III reforms further supports authorized deposit-taking institutions in dedicating time and resources to maintaining their operations and supporting customers in response to COVID-19. This approach is also consistent with the recent decision by BCBS to defer, from January 2022 to January 2023, the internationally agreed start dates for the Basel III standards. As Australian authorized deposit-taking institutions are well-capitalized and meeting the unquestionably strong benchmarks set by APRA in 2017, they already have sufficient capital to meet the new  requirements. Therefore, this deferral does not impact the level of capital that the authorized deposit-taking institutions are required to hold, but rather defers adjustments to the re-allocation of capital across various portfolios.

    While APRA is still consulting on the majority of standards that are affected by COVID-19, the revised operational risk capital requirements were finalized in December 2019. APRA will defer the commencement of APS 115 on Standardized Measurement Approach to Operational Risk for all authorized deposit-taking institutions until January 01, 2023, but will allow banks currently using the advanced measurement approach to operational risk to opt-in to the new standardized approach for an earlier implementation from January 01, 2022 should they wish to do so. This will allow APRA to finalize the revised reporting standard over the next 12 months. APRA will formally amend the commencement date for APS 115 in due course.

     

    Related Links

    Keywords: Asia Pacific, Australia, Banking, Capital Reform, Basel III, LCR, NSFR, Term Funding Facility, COVID-19, APS 115, RBA, Operational Risk, APRA

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News
    News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News
    News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News
    News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267