Featured Product

    APRA Defers Commencement of Six Standards Due to COVID-19 Outbreak

    April 16, 2020

    In response to COVID-19 outbreak, APRA has announced new commencement dates for six prudential and reporting standards that have been finalized but are yet to fully come into effect. These standards are related to margining and risk mitigation for non-centrally cleared derivatives, information security, credit risk management, and associations with related entities. APRA will defer, by 12 months, the next two phase-in periods of initial margin requirements for non-centrally cleared derivatives as set out in CPS 226, in line with the joint decision of BCBS and IOSCO.

    In relation to the CPS 234 on third-party arrangements transition provision, APRA will consider requests for a six-month extension by regulated entities on a case-by-case basis. Entities seeking an extension must advise APRA of the nature of their third-party arrangements and how they are monitoring the risks associated with these arrangements. The affected standards and their revised commencement dates have set out in the table below.

    Industry

    Prudential Standard

    Initial Commencement Date

    Revised Commencement Date

    Cross-industry

    CPS226 Margining and Risk Mitigation for Non-Centrally Cleared Derivatives (phase-in of initial margin requirements)

    September 01,2020, 2021

    September 01, 2021, 2022

    CPS234 Information Security (third-party arrangements transition provision)

    July 01, 2020

    Six month extension to January 01, 2021 available on a case-by-case basis

    Banking

    APS220 Credit Risk Management

    January 01, 2021

    January 01, 2022

    APS222 Associations with Related Entities

    ARS222.0 Exposures to Related Entities

    ARS222.2 Exposures to Related Entities – Step-in risk

    January 01, 2021

    January 01, 2022

    Additionally, the work on product responsibility under the Banking Executive Accountability Regime has now been subsumed into work on the Financial Accountability Regime, as mentioned in the Government’s proposal paper on Financial Accountability Regime. APRA intends to release further information on product responsibility when the Government consults on the exposure draft legislation and the implementation timeframe for the Financial Accountability Regime. APRA will formally amend the commencement dates for affected prudential and reporting standards in due course.

     

    Related Link: Press Release

     

    Keywords: Asia Pacific, Australia, Banking, COVID-19, Deadline Extension, Credit Risk, Derivatives, BEAR, Governance, Reporting, Cyber Risk, Third-Party Arrangements, BCBS, IOSCO, APRA

    Featured Experts
    Related Articles
    News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News
    News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News
    News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News
    News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Climate Risks, Issues Other Updates

    The Basel Committee on Banking Supervision (BCBS) launched consultation on a Pillar 3 disclosure framework for climate-related financial risks, with the comment period ending on February 29, 2024.

    December 18, 2023 WebPage Regulatory News
    News

    US Government Moves to Regulate Development and Use of AI Models

    The U.S. President Joe Biden signed an Executive Order, dated October 30, 2023, to ensure safe, secure, and trustworthy development and use of artificial intelligence (AI).

    December 18, 2023 WebPage Regulatory News
    News

    MAS Launches Gprnt Digital Platform for ESG Reporting for SMEs

    The Monetary Authority of Singapore (MAS) launched an integrated digital platform, Gprnt, also known as “Greenprint.”

    November 29, 2023 WebPage Regulatory News
    News

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    NGFS Publishes Phase IV Long-term Climate Scenarios for Banks

    The Network for Greening the Financial System (NGFS) published its latest set of long-term climate macro-financial scenarios (Phase IV) for assessing forward-looking climate risks.

    November 28, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8947