When APRA took over the bank supervision function from the Reserve Bank (Bank) on 1 July 1998, it adopted the Prudential Statements previously issued by the Bank in relation to the supervision of banks. The Prudential Statements establish the minimum prudential standards which banks are required to observe. They were formulated after consultation with banks and took into account supervisory policies existing overseas, notably those produced by the Basle Committee on Banking Supervision. When changes are made to the Prudential Statements, they will be notified to banks, published by way of a media release issued by APRA and made available on APRA's Web Site.
APRA's approach to the prudential supervision of banks is predicated on the view that the prime responsibility for the prudent management of a bank's business lies with the board and management of the bank. It is the function of the board and management to assess the risks in the activities the bank undertakes and continually monitor and control those risks.
Replaced by the Guidelines on Authorisation of ADIs issued in May 2000
Contact APRA | 1300 55 88 49 | GPO Box 9836 Sydney NSW
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