Featured Product

    APRA Outlines Strategic Work Priorities for Coming Years

    August 26, 2021

    The Australian Prudential Regulation Authority (APRA) published its corporate plan for 2021-25. The plan sets out the strategic priorities of APRA to protect bank deposit-holders, insurance policyholders, and superannuation members and focuses on preparing for future challenges. With respect to the initiatives of relevance for the banking sector, over the coming months, APRA plans to focus on completing the implementation of Basel III reforms, delivering on the 2020-2024 cybersecurity strategy, furthering the governance, culture, remuneration, and accountability (GCRA) work program, encouraging innovation in regtech and suptech, and developing advanced analytical capabilities.

    The corporate plan outlines the following key strategic priorities:

    • Preserve the resilience of banks. APRA will focus on completing the implementation of Basel III capital reforms as well as on maintaining scrutiny of credit and liquidity risks at individual bank and systemic levels. APRA will ensure that banks are operationally resilient, support the ongoing development of credible recovery plans by banks, and monitor banking industry cohorts by adopting targeted supervisory strategies, where appropriate. APRA will deliver on the 2020-2024 cybersecurity strategy with aim of strengthening cyber resilience. APRA will also continue to deliver on the GCRA work program with concentrated attention in certain areas, including finalizing and implementing prudential standard on remuneration (CPS 511) and strengthening prudential standards on risk management (CPS 220), governance (CPS 510), and fit and proper (CPS 520). 
    • Modernize the prudential architecture. Over the 2021–2025 plan horizon, APRA will modernize the prudential framework to make the prudential standards and guidance more accessible for industry, reduce burden, and encourage innovation in regtech and suptech. It will build capabilities to support digitization and better regulation, as well as adapt the architecture to cater for new and emerging risks from the evolving global and domestic financial landscape.
    • Enable data-driven decision-making. To achieve this strategic priority, in the short-term, APRA will deliver its new data collection infrastructure in the form of APRA Connect, and accelerate migration of continuing data collections from its legacy system (D2A) to the APRA Connect platform across all regulated industries. APRA will implement new data collections designed to collect more granular data, continue to pilot and apply applications of data science analytics techniques, and continue to work with other government agencies on opportunities to collect data once and share. APRA eventually intends to decommission D2A and further develop advanced analytical capabilities. APRA also plans to modernize its data publications by investing in tools to support more extensive external data sharing, both publicly and between government agencies.

    Over the 2021–2025 plan horizon, APRA will seek to ensure the Australian financial system is future-ready by:

    • Dedicating regulatory attention to the evolving financial landscape in Australia including understanding the impact of new financial activities and participants.
    • Helping to find solutions to current challenges, such as superannuation retirement income products, insurance accessibility and affordability for Australians, and the financial risks associated with climate change. APRA will continue its work on improving the understanding and managing of financial risks associated with climate change, to facilitate well-informed decision-making by regulated entities. This includes finalizing prudential guidance, conducting climate vulnerability assessments, data gathering and further engagement with Council of Financial Regulator (CFR) agencies, industry bodies, research organizations, and global regulatory peers.
    • Adopting the latest regulatory tools, techniques and practices in areas such as specialist regulatory services, enforcement actions, transparency, and resolution.


    Related Links

    Keywords: Asia Pacific, Australia, Banking, Corporate Plan, Strategic Priorities, Credit Risk, Basel, Liquidity Risk, Cyber Risk, Operational Risk, Governance, Climate Change Risk, ESG, Data Collection, APRA Connect, Regtech, Suptech, APRA

    Featured Experts
    Related Articles

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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