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Prudential Supervision of Banks: Prudential Statements

These Prudential Statements no longer apply.

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.

Prudential Statements
Subject Title
(Date of Issue)
Ownership and Control Ownership and Control of Banks (October 1994) B1
Capital Adequacy Capital Adequacy of Banks (September 1999) C1
Funds Management and Securitisation (October 1995) C2
Market Risk (August 1998) C3
Liquidity Management Liquidity Management (April 1998) D1
Credit Exposures Supervision of Banks' Large Credit Exposure (August 1989) E1
Associations with Non-Banks Banks' Association with Non-Banks (December 1995) G1
Auditing Relationships Between Banks, Their External Auditors and the Australian Prudential Regulation Authority (May 1997) H1
Banking Authorisation Application for a Banking Authority - Locally incorporated banks

Replaced by the Guidelines on Authorisation of ADIs issued in May 2000

Banking Authorisation Application for a Banking Authority - Foreign Bank branches

Replaced by the Guidelines on Authorisation of ADIs issued in May 2000

Asset Quality Asset Quality (January 1995) L1