Featured Product

    APRA Applies Additional Capital Requirements to Three Australian Banks

    July 11, 2019

    APRA is applying additional capital requirements to three major banks in Australia to reflect higher operational risk identified in their risk governance self-assessments. The minimum capital requirement of ANZ, National Australia Bank, and Westpac is being increased by USD 500 million each. The capital add-ons will apply until the banks have completed their planned remediation to strengthen risk management and have closed gaps identified in their self-assessments.

    APRA supervisors continue to provide tailored feedback to other banks, insurers, and superannuation licensees that provided self-assessments to APRA. Where weaknesses have been identified, the level of supervisory scrutiny is being increased as remediation actions are implemented. Where material weaknesses exist, APRA is also considering the need for the application of an additional operational risk capital requirement.

    This increase in capital requirements follows APRA’s decision, in May 2018, to apply a USD 1 billion capital add-on to the Commonwealth Bank of Australia in response to the findings of the APRA-initiated prudential inquiry into the bank. Following the final report of the inquiry, APRA wrote to the boards of 36 of the largest banks, insurers, and superannuation licensees in the country asking them to gauge whether the weaknesses uncovered by the inquiry also existed in their own companies. Although the self-assessments raised no concerns about financial soundness, it was confirmed that many of the issues identified in the inquiry were not unique to the Commonwealth Bank of Australia. This included the need to strengthen non-financial risk management, to ensure that accountabilities are clear, cascaded, and enforced,  and to address the long-standing weaknesses and enhance risk culture.

     

    Related Links 

    Keywords: Asia Pacific, Australia, Banks, Capital Requirements, Operational Risk, ANZ, National Australia Bank, Westpac, Regulatory Capital, APRA

    Featured Experts
    Related Articles
    News

    EIOPA Forms Consultative Expert Group on Digital Ethics in Insurance

    EIOPA established the Consultative Expert Group on Digital Ethics in Insurance to assist EIOPA in the development of digital responsibility principles in insurance.

    September 17, 2019 WebPage Regulatory News
    News

    FASB Proposes Taxonomy Changes Related to Topics 848 and 470

    FASB proposed taxonomy improvements for the proposed Accounting Standards Update on topic 848 on facilitation of effects of reference rate reform on financial reporting.

    September 16, 2019 WebPage Regulatory News
    News

    BoE Statement on Recalculating Transitional Measures Under Solvency II

    BoE notified that it will be willing to accept applications from firms to recalculate transitional measure on technical provisions (TMTP) as at September 30, 2019.

    September 16, 2019 WebPage Regulatory News
    News

    BIS Hosts Conference to Discuss Issues from Emergence of Stablecoins

    BIS hosted a conference in Basel to discuss policy and regulatory issues posed by the emergence of stablecoin initiatives backed by financial institutions and large technology companies.

    September 16, 2019 WebPage Regulatory News
    News

    BIS Paper on Embedded Supervision of Blockchain-Based Financial Market

    BIS published a working paper that investigates ways to regulate and supervise blockchain-based financial markets.

    September 16, 2019 WebPage Regulatory News
    News

    BoE Paper on Market-Implied Systemic Risk and Shadow Capital Adequacy

    BoE published a working paper that presents a forward-looking approach to measure systemic solvency risk.

    September 13, 2019 WebPage Regulatory News
    News

    HKMA Consults on Policy Module on Pillar 2 Supervisory Review Process

    HKMA is consulting on the revised Supervisory Policy Manual module CA-G-5 that sets out the HKMA approach to conducting the supervisory review process under Pillar 2.

    September 13, 2019 WebPage Regulatory News
    News

    PRA Publishes Waiver by Consent of Continuity of Access Rules

    PRA published a new waiver by consent to waive the Continuity of Access requirements contained in the Depositor Protection Part of the PRA Rulebook (DPP).

    September 13, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for September 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to three questions.

    September 13, 2019 WebPage Regulatory News
    News

    BoE Publishes Update on Meeting of Working Group on Risk-Free Rates

    BoE published the minutes of the July meeting of working group on sterling risk-free reference rates.

    September 13, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3827