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

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793