Featured Product

    APRA Announces Revisions to Capital Framework for Banks

    July 26, 2022

    The Australian Prudential Regulation Authority (APRA) is announced revisions to the capital framework for authorized deposit-taking institutions to implement the "unquestionably strong" capital ratios and the Basel III reforms. Additionally, APRA is initiating a consultation on consequential amendments, arising from the capital reforms, to the Prudential Standard APS 120 Securitization (APS 120), the Prudential Standard APS 180 Capital Adequacy: Counterparty Credit Risk (APS 180), and the Prudential Standard APS 210 Liquidity (APS 210). The consultation period ends on August 26, 2022. APRA also announced removal of the remaining $150 million capital overlay that was applied to Allianz Australia Limited to address the identified risk governance weaknesses.

    APRA released the final prudential practice guides that accompany the final capital adequacy and credit risk capital requirements for authorized deposit-taking institutions. The prudential practice guides provide guidance on sound practice for authorized deposit-taking institutions in implementing the revised standards, including the use of capital buffers and the determination of credit risk capital requirements under the new framework.

    Alongside the final practice guides, it is releasing an updated version of APS 113, the prudential standard titled Capital Adequacy: Internal Ratings-based Approach to Credit Risk, with minor amendments resulting from the consultation on the guidance. APRA is also releasing a response paper to the submissions paper that provides a more detailed response to technical issues raised in the November 2021 consultation on the draft prudential practice guides. The paper initiates a consultation on consequential amendments (arising from capital reforms) to certain other relevant  prudential standards and outlines the next steps for implementation of the revised capital standards, including the use of temporary data proxies. The new capital framework aims to strengthen the financial resilience of the banking industry by embedding the industry’s unquestionably strong levels of capital, with higher capital buffers providing greater flexibility for periods of stress. The prudential practice guides include APG 110 on capital adequacy, APG 112 on the standardized approach to credit risk, and APS 113 on the internal ratings-based approach to credit risk. 

     

    Related Links

     

    Keywords: Asia Pacific, Australia, Banking, Guidance, Basel, Regulatory Capital, APS 113, Credit Risk, APG 110, APG 112, APG 113, Standardized Approach, IRB Approach, Allianz Australia Limited, APRA

    Featured Experts
    Related Articles
    News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News
    News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News
    News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News
    News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News
    News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Climate Risks, Issues Other Updates

    The Basel Committee on Banking Supervision (BCBS) launched consultation on a Pillar 3 disclosure framework for climate-related financial risks, with the comment period ending on February 29, 2024.

    December 18, 2023 WebPage Regulatory News
    News

    US Government Moves to Regulate Development and Use of AI Models

    The U.S. President Joe Biden signed an Executive Order, dated October 30, 2023, to ensure safe, secure, and trustworthy development and use of artificial intelligence (AI).

    December 18, 2023 WebPage Regulatory News
    News

    MAS Launches Gprnt Digital Platform for ESG Reporting for SMEs

    The Monetary Authority of Singapore (MAS) launched an integrated digital platform, Gprnt, also known as “Greenprint.”

    November 29, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8949