The paper discusses APRAs broad approach to policy development, the factors driving change in prudential supervision in Australia and some of the specific policy issues on APRAs work program.

These include:

• harmonisation of prudential standards for Authorised Deposit-taking Institutions (ADIs);
• development of a comprehensive framework for the prudential supervision of conglomerates;
• reform of the prudential supervision framework for general insurance companies;
• reassessment of the international Capital Accord applied to banks and other ADIs; and
• development of policies to address emerging developments in the financial system - such as the trend towards "e-commerce" within the financial sector, and the use of credit mitigation techniques such as credit derivatives by financial institutions.

While this paper is mainly for information, APRA nonetheless welcomes comments on its general approach to policy development and on the policy initiatives outlined.

For further information contact:

Brian Gray
Executive General Manager
Policy, Research and Consulting
02 9210 3141