Featured Product

    APRA Survey Reveals Some Entities Find Regulatory Burden Too High

    September 07, 2021

    The Australian Prudential Regulation Authority (APRA) published results of the 2021 stakeholder biennial survey of regulated entities as well as knowledgeable observers, such as auditors, actuaries, and industry associations. APRA undertakes the biennial stakeholder surveys to help assess its performance and effectiveness. The results reveal that the regulatory and supervisory approaches of APRA have positively impacted the banking, insurance, and superannuation industries during COVID-19 crisis. The survey indicates that a quarter of the regulated entities feel that regulatory burden on the entity is too high versus the benefit gained by the entity. Moreover, almost one-third of the respondents believe that APRA collects too much statistical data.

    For this seventh stakeholder survey since 2009, APRA had engaged Orima Research, which conducted the survey over six weeks during May 2021 and June 2021. The survey received responses from 297 regulated entities and 31 knowledgeable observers. The survey found that 95% of the regulated entities believe that APRA effectively communicated its changing expectations during the COVID-19 crisis, while 87% agree that the policy responses of APRA were appropriate and helpful to their entity during the pandemic. More than 95% of the entities believe that the APRA supervision helps to protect both their industry and the financial well-being of the Australian community. Among other key findings:

    • 95% agree that APRA’s public communications are clear and effective
    • 93% agree that APRA is effective in identifying risks across industry
    • 87% agree that APRA’s increased focus on risk culture had a positive impact on their entity

    Across the first seven editions of the survey, the results have been consistently strong, with small improvements recorded in 2021 (versus 2019) among the regulated entities. General patterns observed in the 2021 results are that the views of regulated entities are equal to or more positive than those of the knowledgeable observers, a pattern that has been observed previously. Among the regulated entities, in 2021, the views of entities that are part of a group are generally broadly in line with the entities that are not part of a group. Most statistically significant changes observed among regulated entities from 2019 to 2021 are upward, whereas statistically significant changes among knowledgeable observers were generally slightly downward.


    Related Links

    Keywords: Asia Pacific, Australia, Banking, Survey Results, Regulated Entities, COVID-19, Stakeholder Survey, Regulatory Burden, Statistical Reporting, APRA

    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582