“APRA Updates Capital Framework for Australian Banks: What You Need to Know”


In a recent development, the Australian Prudential Regulation Authority (APRA) has released a response to submissions on minor updates to the capital framework for authorised deposit-taking institutions (ADIs). This move is aimed at addressing specific issues raised by the industry on the implementation of the new capital framework for ADIs.

The final amendments are minor and technical in nature, according to the response letter released by APRA. The prudential standards, prudential practice guides, and reporting standards are now available on the APRA website, ensuring transparency and accessibility for all stakeholders.

For those unfamiliar, APRA is the prudential regulator of the financial services industry in Australia. It oversees a wide range of financial institutions, including banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry.

APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members. This latest update to the capital framework is a testament to APRA’s commitment to maintaining stability and promoting sound practices in the financial sector.