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APRA releases prudential practice guide on capital buffers

Tuesday 30 August 2016



The Australian Prudential Regulation Authority (APRA) has today released a new prudential practice guide on the operation of capital buffers for authorised deposit-taking institutions (ADIs).

Prudential Practice Guide APG 110 Capital Buffers (APG 110) provides clarification and guidance for ADIs on the operation of the capital conservation buffer and the countercyclical capital buffer - collectively referred to as the capital buffers.

APRA released draft APG 110 for consultation in December 2015. In response to feedback received during the consultation period, APRA made amendments to APG 110 to provide some additional clarification on the operation of the capital buffers. Details on these changes can be found in APRA’s response to submissions letter, which was also released today.

The prudential practice guide APG 110 and the response to submissions letter can be found on the APRA website.

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, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $6 trillion in assets for Australian depositors, policyholders and superannuation fund members.