February 21, 2019

IMF published the results of its financial sector assessment for Australia in the form of a consolidated financial system stability assessment (FSSA) report and several technical notes. APRA welcomed the IMF Financial Sector Assessment Program (FSAP) report on Australia. The assessment concluded that the Australian financial system has been further strengthened since the previous assessment of IMF in 2012. The 2018 FSAP underscores the strength and resilience of the Australian financial system.

APRA published the following reports and technical notes as part of the 2018 FSAP evaluation on Australia:

  • Report on Financial System Stability Assessment
  • Report on Detailed Assessment of Observance of the Basel Core Principles For Effective Banking Supervision (BCP)
  • Technical Note on Systemic Risk Oversight and Macro-prudential Policy
  • Technical Note on Regulation and Supervision in Insurance Sector
  • Technical Note on Supervision, Oversight and Resolution Planning of Financial Market Infrastructures (FMI)
  • Technical Note on Stress Testing the Banking Sector and Systemic Risk Analysis
  • Technical Note on Bank Resolution and Crisis Management

Under the FSAP review, APRA was subject to a comprehensive assessment of its supervisory approach and capabilities in banking and insurance supervision. IMF also assessed the adequacy of systemic risk oversight by APRA and other members of the Council of Financial Regulators, the crisis preparedness, and the financial safety nets. Overall, the IMF assessment concluded the following:

  • Australia benefits from a robust regulatory framework and its prudential supervision shows generally high conformity to international best practices, but with opportunities to further strengthen certain practices.
  • Bank capital requirements have been raised and applied more conservatively than minimum Basel standards; furthermore, the Australian authorities have taken welcome steps to further strengthen the resilience of banks through stress testing programs.
  • Bank solvency appeared resilient to stress based on the own stress testing exercise of IMF, with the results broadly in line with stress testing undertaken by APRA.
  • Policy action has lowered financial stability risks in the banking system through the introduction of stronger lending standards, including the temporary restrictions on the growth of investor loans and the share of interest-only mortgages.
  • APRA has undertaken a comprehensive reform of the prudential regulation for insurance companies, while improving the consistency of the framework between life and general insurers since the last assessment of IMF in 2012.


Related Links

Keywords: Asia Pacific, Australia, Banking, Insurance, PMI, FMI, BCP, Systemic Risk, Stress-Testing, Basel III, Bank Resolution, Macro-Prudential Policy, FSAP, FSSA, IMF, APRA


Related Articles
News

IMF Releases Report on 2019 Article IV Consultation with United States

IMF published its staff report in the context of the 2019 Article IV consultation with the United States.

June 24, 2019 WebPage Regulatory News
News

BIS Report Discusses Regulatory Issues Related to Big Techs in Finance

BIS has pre-released a chapter of the BIS Annual Economic Report; this chapter focuses on the risks and opportunities presented by large technology firms in the financial services sector.

June 23, 2019 WebPage Regulatory News
News

IOSCO Report Examines Liquidity in Corporate Bond Markets

IOSCO published a report that examines the factors affecting liquidity, under stressed conditions, in the secondary corporate bond markets.

June 21, 2019 WebPage Regulatory News
News

FED Publishes Results of the 2019 Stress Tests for Banks

FED published a report presenting results of the Dodd-Frank Act Stress Test (DFAST) exercise for 2019.

June 21, 2019 WebPage Regulatory News
News

BCBS Report Examines Global Pillar 2 Supervisory Review Practices

BCBS published a report that examines the Pillar 2 supervisory review practices and approaches in Basel member jurisdictions.

June 21, 2019 WebPage Regulatory News
News

IASB Publishes Work Plan and Meeting Updates for June 2019

IASB published an updated work plan and a summary of its June meeting, which presents preliminary decisions of the Board.

June 21, 2019 WebPage Regulatory News
News

HKMA Publishes Banking Exposure Limits Code Under Banking Ordinance

HKMA issued a circular to all authorized institutions informing that the Banking (Exposure Limits) Code has been published in the Gazette on June 21, 2019.

June 21, 2019 WebPage Regulatory News
News

OSFI Proposes Guideline on Internal Model Oversight for Insurers

OSFI proposed the draft guideline E-25 on the internal model oversight framework for federally regulated property and casualty (P&C) insurance companies.

June 21, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for June 2019

Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published one answer regarding the calculation of institution-specific countercyclical capital buffer rates.

June 21, 2019 WebPage Regulatory News
News

SEC Finalizes Capital and Margin Requirements for Security-Based Swaps

SEC adopted a package of rules and rule amendments to establish capital, margin, and segregation requirements for security-based swaps, under Title VII of the Dodd-Frank Act.

June 21, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3304