Featured Product

    APRA Publishes Policy and Supervisory Priorities for 2020

    January 30, 2020

    APRA has set out its policy and supervision priorities for the next 12 to 18 months, with an emphasis on fulfilling the strategic goals of its Corporate Plan. These goals are maintaining financial system resilience, improving outcomes for superannuation members, improving cyber-resilience in the financial sector, and transforming governance, culture, remuneration, and accountability (GCRA) across all APRA-regulated institutions. Additionally, while speaking at the Chair Forum of the Investment Magazine, the APRA Deputy Chair Helen Rowell presented the policy and supervisory agenda for superannuation sector in 2020.

    Consistent with the previous years, the policy priorities of APRA offer a forward view of planned changes to the prudential framework. Among the key cross-industry policy priorities for 2020 are initiatives aimed at driving improvements in GCRA, including finalizing a more robust prudential standard on remuneration, and updating prudential standards on governance and risk management. Additionally, as flagged in the APRA Insight last month, APRA intends to roll out a new prudential risk rating system to replace its long-standing Probability and Impact Rating System and Supervisory Oversight and Response System (also known as PAIRS and SOARS models) mid-year. APRA will also work closely with the Treasury and the Australian Securities and Investments Commission in expanding the Banking Executive Accountability Regime (BEAR) to the insurance and superannuation sectors. The other key policy priorities include the following:

    • Strengthening crisis preparedness, including the development of a new prudential standard on resolution and recovery planning
    • Completing the current review of the capital framework for authorized deposit-taking institutions to implement unquestionably strong capital ratios and the Basel III reforms
    • Progressing a range of enhancements recommended by the post-implementation review of the original superannuation prudential framework introduced in 2013
    • Continuing work on strengthening the capital framework for private health insurers

    Accompanying the policy priorities are the supervision priorities of APRA, which outline how the supervision function will be directed toward significant risks in the financial system and actions to ensure that these risks are well-managed and mitigated. In the supervision arena, the following are the key priorities for 2020: 

    • Maintaining financial resilience, including through increased focus on recovery and resolution planning and stress testing
    • Conducting a range of GCRA-related supervisory reviews and deep dives and using entity self-assessments to drive greater accountability
    • Encouraging under-performing superannuation funds to urgently improve member outcomes or exit the industry
    • More closely assessing institutions’ capability to deal with emerging and accelerating risks, such as cyber-security and climate change


    Related Links

    Keywords: Asia Pacific, Australia, Banking, Insurance, Pensions, Superannuation, Policy Priorities 2020, Supervision Priorities 2020, GCRA, Corporate Plan, Basel III, BEAR, Resolution Framework, Operational Risk, APRA

    Featured Experts
    Related Articles

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News

    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
    RESULTS 1 - 10 OF 8700