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.
Keywords: Asia Pacific, Australia, Banking, Survey Results, Regulated Entities, COVID-19, Stakeholder Survey, Regulatory Burden, Statistical Reporting, APRA
Previous ArticleAPRA Licenses Avenue Bank as Restricted Deposit-Taking Institution
The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA
The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.
The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.
The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.
In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.
The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).
EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.