Search Results for: APRA capital

APRA Holds Countercyclical Capital Buffer; Releases Assessment Of Measures To Lift Home Lending Standards

APRA has provided a justifying summary of their actions relating to home lending regulation, but warns that “many of the underlying structural risks associated with high household debt remain and will do so for some time”. Despite this, they have chosen to keep the countercyclical capital buffer at zero. Housing credit growth is slowing, but … Continue reading “APRA Holds Countercyclical Capital Buffer; Releases Assessment Of Measures To Lift Home Lending Standards”

APRA Extends Timeline For Capital Reforms And Reduces Minimum Ratio

The Australian Prudential Regulation Authority (APRA) has released its response to submissions on the introduction of a leverage ratio requirement for authorised deposit-taking institutions (ADIs). APRA also announced that it is proposing to align the implementation of a range of revisions to the capital framework for ADIs, including the proposed leverage ratio, with the timeline … Continue reading “APRA Extends Timeline For Capital Reforms And Reduces Minimum Ratio”

APRA to make ADI capital framework “more transparent, comparable and flexible”

The Australian Prudential Regulation Authority (APRA) has sought industry feedback on potential approaches to adjust the capital framework for authorised deposit-taking institutions (ADIs) to make capital ratios more transparent, comparable and flexible. Importantly, the proposals in this paper are not intended to change the quantum or allocation of capital. The idea of harmonising with international … Continue reading “APRA to make ADI capital framework “more transparent, comparable and flexible””

CBA Complacent, Missed Risks, $1Bn Capital Add-in From APRA

The Australian Prudential Regulation Authority (APRA) today released the Final Report of the Prudential Inquiry into the Commonwealth Bank of Australia (CBA). The report says CBA’s continued financial success dulled the institution’s senses to signals that might have otherwise alerted the Board and senior executives to a deterioration in CBA’s risk profile. APRA has applied … Continue reading “CBA Complacent, Missed Risks, $1Bn Capital Add-in From APRA”

APRA approves ING Bank (Australia) Limited to use internal models to calculate regulatory capital

The Australian Prudential Regulation Authority (APRA) today announced that it has granted approval to ING Bank (Australia) Limited to begin using its internal models to determine its regulatory capital requirements for credit and market risk, commencing from the quarter ended 30 June 2018. ING is the first authorised deposit-taking institution (ADI) to be accredited since … Continue reading “APRA approves ING Bank (Australia) Limited to use internal models to calculate regulatory capital”

APRA Kicks Off Capital Framework Discussion

The Australian Prudential Regulation Authority (APRA) has released two discussion papers for consultation with authorised deposit-taking institutions (ADIs) on proposed revisions to the capital framework. The key proposed changes to the capital framework include: lower risk weights for low LVR mortgage loans, and higher risk weights for interest-only loans and loans for investment purposes, than … Continue reading “APRA Kicks Off Capital Framework Discussion”

APRA on Bank Capital and Housing

APRA Chairman Wayne Byers spoke at the A50 Australian Economic Forum, Sydney. Significantly, he says the temporary measures taken to address too-free mortgage lending will morph into the more permanent focus on amongst other things, further strengthening of borrower serviceability assessments by lenders, strengthened capital requirements for mortgage lending imposed by us, and comprehensive credit … Continue reading “APRA on Bank Capital and Housing”

APRA welcomes finalisation of Basel III bank capital framework

APRA has welcomed the Basel III announcement and expects to commence consultation on revisions to the ADI capital framework in early 2018. Despite the 2022 date, APRA also reaffirmed that Australian banks should be following strategies to increase their capital strength to exceed the unquestionably strong benchmarks by 1 January 2020. The Australian Prudential Regulation … Continue reading “APRA welcomes finalisation of Basel III bank capital framework”

APRA releases changes to the capital framework for mutual ADIs

The Australian Prudential Regulation Authority (APRA) has released its final revisions to the capital framework for mutually owned authorised deposit-taking institutions (ADIs) in relation to changes that provide these ADIs with more flexibility in their capital management. In 2014, APRA developed the Mutual Equity Interest (MEI) framework for mutually owned ADIs. The advent of MEIs … Continue reading “APRA releases changes to the capital framework for mutual ADIs”

APRA consults on changes to mutually owned ADIs’ capital framework

The Australian Prudential Regulation Authority (APRA) has released for consultation a discussion paper on proposed revisions to the capital framework for mutually owned authorised deposit-taking institutions (ADIs) to enable them to directly issue Common Equity Tier 1 (CET1) capital instruments. In 2014, APRA developed a Mutual Equity Interest (MEI) framework for mutually owned ADIs that … Continue reading “APRA consults on changes to mutually owned ADIs’ capital framework”