The Australian Prudential Regulation Authority (APRA) is working closely with the Reserve Bank of New Zealand (RBNZ) on the implementation of the Basel II Capital Framework (Basel II). This enhanced home-host relationship between APRA and the RBNZ will promote closer co-ordination and harmonisation of supervisory arrangements across the Tasman, particularly given the fact that the four largest banks in New Zealand are owned by Australian banks.

APRA and the RBNZ have agreed a Terms of Engagement which establishes high-level principles for the cross-border implementation of Basel II in Australia and New Zealand. A copy of the Terms of Engagement is available on APRA’s website at: http://www.apra.gov.au/AboutAPRA/loader.cfm?url=/commonspot/security/getfile.cfm&PageID=8443

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry.APRA is funded largely by the industries that it supervises. It was established on 1 July 1998.APRA currently supervises institutions holding approximately $2.0 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.