The Australian Prudential Regulation Authority (APRA) recently granted NongHyup Bank a license to operate as a foreign authorized deposit-taking institution and revoked the authorized deposit-taking institution license of Volt Bank Limited. Effective from September 01, 2022, APRA also removed the 10% liquidity add-on to the net cash outflow component of the Liquidity Coverage Ratio (LCR) calculation of Westpac Banking Corporation, for breaching the APRA prudential standards on liquidity. In addition, APRA is seeking comments, until December 06, 2022, on the draft prudential practice guides on financial contingency planning (CPG 190) and resolution planning (CPG 900)] for implementing the respective draft prudential standards (CPS 900 and CPS 190).
The CPG 900 on resolution planning sets out guidance for regulated entities to assist in the implementation of the prudential standard on resolution planning (CPS 900). The draft guide sets out the outcomes that APRA is seeking to achieve at each stage of the resolution planning process and the factors that APRA will consider in developing a resolution plan for an entity. The draft practice guide explains the APRA approach to decision-making and demonstrates how entity feedback would be considered in implementing various CPS 900 requirements. Based on stakeholders feedback on CPS 900, APRA expects that small revisions to CPS 900 may be appropriate, including to clarify the Board’s role in resolution planning and the APRA expectations on on resolution planning disclosures. APRA plans to finalize both CPS 900 and CPG 900 in the first half of 2023, with the prudential standard on resolution planning coming into effect from January 01, 2024.
The CPG 190 on financial contingency planning sets out guidance for regulated entities to assist in the implementation of the prudential standard on financial contingency planning (CPS 190). The prudential standard requires all regulated entities to undertake financial contingency planning so that they are ready to respond to severe financial stress that may threaten their viability. APRA-regulated entities have the flexibility to manage their financial contingency planning practices in a manner that is best suited to achieving their objectives. The CPG 190 is principles-based, rather than prescriptive, and includes examples of better practice. APRA plans to finalize the prudential standard on financial contingency planning later in 2022 and the guidance on financial contingency planning in the first half of 2023, with the prudential standard coming into effect from January 01, 2024.
As part of the consultation on these practice guides, APRA has also mapped requirements in the proposed prudential standards to relevant guidance in the draft CPG 190 and CPG 900. The integrated versions of draft CPG 190 and CPG 900 have been provided as an additional resource, to assist industry in understanding the proposed reforms in totality.
- Press Release on NongHyup Bank
- Press Release on Volt Bank
- Press Release on Westpac Banking Corporation
- Press Release on CPG 190 and CPG 900
- Consultation on Draft Guidance
- Draft Guide on Resolution Planning (PDF)
- Draft Guide on Contingency Planning (PDF)
Keywords: Asia Pacific, Australia, Banking, Contingency Planning, Resolution Planning, CPS 190, CPG 190, CPS 900, CPG 900, Basel, LCR, Liquidity Risk, Westpac, Volt Bank, NongHyup Bank, Resolution Framework, APRA
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.