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

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697