Featured Product

    APRA Keeps CCyB at Zero, Updates FAQs on Liquidity Standards

    APRA updated the frequently asked questions (FAQs) on liquidity risk standards for authorized deposit-taking institutions. As part of this update, APRA has published new FAQs on minimum liquidity holdings, mortgage warehouse facilities, and calculation of collateral outflows. The FAQs provide further information to assist regulated entities in the interpretation of the prudential standard APS 210, the prudential practice guide APG 210, and the reporting standard ARS 210.0 on liquidity risk management. APRA also published an information paper setting out its decision on the quarterly assessment of the countercyclical capital buffer (CCyB) for authorized deposit-taking institutions.

    APRA confirmed that, for the authorized deposit-taking institutions, a CCyB of 0% remains appropriate, based on an assessment of the systemic risk environment in the country. The CCyB is likely to remain at this level until at least the end of 2021. APRA reviews the buffer quarterly and may adjust it if future circumstances warrant this. CCyB has been set at 0% of the risk-weighted assets since it was introduced in 2016. However, APRA has already flagged its intention to introduce a non-zero default level for the CCyB and has outlined a proposal to do this as part of the consultation on making the capital framework for authorized deposit-taking institutions more risk-sensitive, flexible, and transparent. This set of reforms will not come into effect until the beginning of 2023. APRA expects to commence the next stage of its consultation on the authorized deposit-taking institutions' capital in the first half of next year. The revised capital framework of APRA is currently scheduled to come into effect from January 01, 2022.

     

    Related Links

    Keywords: Asia Pacific, Australia, Banking, CCyB, Regulatory Capital, FAQ, Liquidity Risk, Basel, Systemic Risk, Reporting, APRA

    Featured Experts
    Related Articles
    News

    BIS Examines Use of Big Data and Machine Learning at Central Banks

    BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.

    March 04, 2021 WebPage Regulatory News
    News

    APRA Finalizes Reporting Standard for Operational Risk Requirements

    APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.

    March 03, 2021 WebPage Regulatory News
    News

    ECB Publishes Guide for Determining Penalties for Regulatory Breaches

    ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.

    March 02, 2021 WebPage Regulatory News
    News

    MAS Sets Out Good Practices to Manage Operational Risks Amid COVID

    MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.

    March 02, 2021 WebPage Regulatory News
    News

    ACPR Announces New Data Collection Application for Banks and Insurers

    ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.

    March 02, 2021 WebPage Regulatory News
    News

    BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox

    BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.

    March 02, 2021 WebPage Regulatory News
    News

    EIOPA Launches Study on Non-Life Underwriting Risk in Internal Models

    EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.

    March 01, 2021 WebPage Regulatory News
    News

    SRB Publishes Overview of Resolution Tools Available in Banking Union

    SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.

    March 01, 2021 WebPage Regulatory News
    News

    EBA Consults on Pillar 3 Disclosure Standards for ESG Risks Under CRR

    EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).

    March 01, 2021 WebPage Regulatory News
    News

    ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting

    ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting

    March 01, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6655