Featured Product

    APRA Applies Additional Capital Requirement for an Australian Insurer

    August 14, 2019

    APRA decided to apply an additional $250 million capital requirement to Allianz Australia Limited to reflect the issues identified in the risk governance self-assessment by the insurer. With this, Allianz Australia Limited becomes the fifth APRA-regulated entity to have an additional capital requirement imposed due to heightened operational risk, after Commonwealth Bank of Australia, ANZ, National Australia Bank, and Westpac. APRA has advised Allianz Australia Limited that the extra capital requirement will remain in place until it completes the remediation work underway to strengthen risk management and closes gaps identified in its self-assessment.

    Allianz Australia Limited was one of the 36 banks, insurers and superannuation licensees that APRA had asked to undertake a self-assessment last year. The self-assessments were intended to gauge whether governance weaknesses identified by the Prudential Inquiry of APRA into the Commonwealth Bank of Australia also existed in other institutions. Overall, the self-assessments confirmed that many of the issues identified in the inquiry were not unique to Commonwealth Bank of Australia, including the need to strengthen non-financial risk management; ensure accountabilities are clear, cascaded, and enforced; and enhance risk culture. A number of common themes have emerged from the self-assessments:

    • Non-financial risk management requires improvement
    • Accountabilities are not always clear, cascaded, and effectively enforced
    • Acknowledged weaknesses are well-known and some have been long-standing
    • Risk culture is not well-understood and, therefore, may not be reinforcing the desired behaviors

     

    Related Links

    Keywords: Asia Pacific, Australia, Insurance, Capital Requirements, Operational Risk, Allianz Australia Limited, Self Assessment, Governance, Prudential Inquiry, APRA

    Related Articles
    News

    Regulators Fine Goldman Sachs for Risk Management Failures

    FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).

    October 23, 2020 WebPage Regulatory News
    News

    Canada Hosts International Conference of Banking Supervisors

    BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.

    October 22, 2020 WebPage Regulatory News
    News

    FCA Proposes More Measures to Help Insurance Customers Amid Crisis

    FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.

    October 21, 2020 WebPage Regulatory News
    News

    EBA Issues Opinion to Address Risk Stemming from Legacy Instruments

    EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.

    October 21, 2020 WebPage Regulatory News
    News

    ESRB Publishes Non-Bank Financial Intermediation Risk Monitor for 2020

    ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).

    October 21, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Policy Statement Amending Benchmarks Regulation

    HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.

    October 21, 2020 WebPage Regulatory News
    News

    APRA Initiates Action Against a Bank for Liquidity Compliance Breach

    APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.

    October 21, 2020 WebPage Regulatory News
    News

    PRA Consults on Implementation of Certain Provisions of CRD5 and CRR2

    PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule to Reduce Impact of Large Bank Failures

    US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule on Net Stable Funding Ratio Requirements

    US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.

    October 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6004