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APRA provides update on Prudential Standard APS 220 Credit Risk Management

The Australian Prudential Regulation Authority (APRA) has provided an update on the implementation of APS 220 Credit Risk Management, to assist authorised deposit-taking institutions (ADIs) in meeting their new requirements. 

Consistent with prior communications, ADIs will be required to meet the requirements of Prudential Standard APS 220 Credit Risk Management (APS 220) from 1 January 2022. The final standard was released by APRA in December 2019 and is available on the Federal Register of Legislation1.

In December 2020, APRA also consulted on minor revisions to APS 220 that were intended to ensure appropriate alignment with Government’s proposed reforms to consumer credit laws. As these proposed changes were contingent on the passing of legislation for the Government’s proposed consumer credit reforms, APRA is not progressing this consultation at this stage. 

APRA is currently consulting on a proposed new attachment to APS 220, Attachment C – Macroprudential policy: credit measures. Feedback on the proposed new attachment should be provided by 28 February 2022. APRA expects to finalise its response to the consultation in the first half of 2022; the new attachment would come into effect shortly thereafter.



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The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees 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.