APRA released their Policy Agenda 2018 today which sets their priorities and agenda.
Looking at banking, they outlined the following:
- Capital adequacy tweaking will likely continue for the next 2-3 years, plus revisions to the prudential standards for operational risk, interest rate risk in the banking book and market risk, and associated changes to reporting and public disclosure requirements. APRA is considering changes to its overall approach to capital requirements in a number of areas where APRA’s methodology is more conservative than minimum international requirements.
- APRA does not anticipate the need to incorporate BEAR expectations into the prudential standards or prudential practice guides in 2018 but will provide guidance where appropriate, potentially in the form of published Frequently Asked Questions.
- They will finalise arrangements to licensing some new ADIs through a phased approach.
- Expect more changes to APG 223 Residential Mortgage Lending, revising underwriting standards and the development of a prudential practice guide for commercial property lending.
