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Status: Pending
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Revisions to the capital framework for authorised deposit-taking institutions

APRA is consulting on revisions to the capital framework for authorised deposit-taking institutions (ADIs) to implement ‘unquestionably strong’ capital ratios and the Basel III reforms.

July 2021

Release of letter on ADI capital reforms: Update on policy settings

 

On 21 July 2021, APRA released a letter to industry on the ADI capital reforms to provide an update on policy settings, which will be used in a quantitative impact study. 

The letter to industry can be found below:

Letter to ADIs: ADI capital reforms: Update.
 

June 2021

Release of letter on implementation of ADI capital reforms: roadmap to 2023

 

On 2 June 2021, APRA released a letter to industry on the implementation of the ADI capital reforms to provide a roadmap on the finalisation of the reforms and upcoming releases.

The letter to industry can be found below:

Letter to ADIs: ADI capital reforms: Roadmap to 2023.

March 2021

Release of finalised reporting standard for ARS 115.0 Capital Adequacy

 

On 3 March 2021, APRA released a response to submissions on proposed changes to Reporting Standard ARS 115.0 Capital Adequacy: Standardised Measurement Approach to Operational Risk (ARS 115.0). The response includes final operational risk reporting requirements for authorised deposit-taking institutions which are contained in ARS 115.0.

The response letter and clean and marked-up copies ARS 115.0 can be found below:

Letter to ADIs: Release of final Reporting Standard ARS 115.0 Capital Adequacy - Standardised Measurement Approach to Operational Risk (ARS 115.0)

Published 3 March 2021

Published 3 March 2021

December 2020

Response papers

 

The December 2020 consultation includes APRA's responses to the August 2018 consultation on improving the transparency, comparability and flexibility of the ADI capital framework, the June 2019 consultation on the revisions to the ADI capital framework and the November 2019 consultation on the leverage ratio requirement for ADIs.

Due to the number of consultations APRA is responding to in this package, there are two papers: a discussion paper that provides a high level overview of APRA's proposals and their indicative impacts, and a response to submissions paper that provides a more detailed response to technical issues raised in the prior consultations.

APRA is also releasing for consultation full drafts of Prudential Standard APS 110 Capital Adequacy, Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk and Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk.

Written submissions on these drafts standards are requested by 1 April 2021.

The response papers and draft standards can be found below:

Published 8 December 2020

Published 8 December 2020

Published 8 December 2020
Published 8 December 2020
Published 8 December 2020
Published 8 December 2020
Published 8 December 2020
 

December 2019

Release of final prudential standard APS 115 and consultation on draft reporting standard ARS 115.0

 

On 11 December 2019, APRA released the final operational risk requirements for authorised deposit-taking institutions (ADIs) which are contained in Prudential Standard APS 115 Capital Adequacy: Standardised Measurement Approach to Operational Risk (APS 115).

In addition, APRA has commenced consultation on a new reporting standard ARS 115.0 Capital Adequacy: Standardised Measurement Approach to Operational Risk (ARS 115.0), which will collect data from ADIs reflecting the prudential requirements set out in APS 115.

Written submissions on draft ARS 115.0 are requested by 21 February 2020.

The response letter, APS 115 and draft ARS 115.0 can be found below:

Release of final Prudential Standard APS 115 and draft Reporting Standard ARS 115.0 for comment
 

Issued December 2019

Issued December 2019

September 2019

Response paper on interest rate risk in the banking book requirements 

 

The September 2019 consultation includes APRA’s response to the submissions received in relation to its initial proposals on the revised interest rate risk in the banking book (IRRBB) requirements, and commences a detailed consultation on other amendments to strengthen the IRRBB prudential framework. It also includes a draft Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book.

Written submissions are requested by 6 December 2019. 

Issued September 2019

Issued September 2019

June 2019 

Response paper 

 

The June 2019 consultation includes APRA’s response to its initial proposals on revised credit risk and operational risk requirements, and simpler prudential requirements for small, less complex ADIs. It also includes draft prudential standards APS 112 Capital Adequacy Standardised Approach to Credit Risk, APS 113 Capital Adequacy Internal Ratings-based Approach to Credit Risk (residential mortgages extract only) and APS 115 Capital Adequacy Standardised Measurement Approach to Operational Risk. 

Written submissions are requested by 6 September 2019. 

Submissions

Received 23 September 2019

Received 16 October 2019

Received 20 September 2019

Received 30 October 2019

Received 31 October 2019

Received 31 October 2019

Received 18 September 2019

Received 6 September 2019

Received 20 September 2019

Received 31 October 2019

 

August 2018

Discussion paper

Published 14 August 2018

Submissions

We received the following non-confidential submissions in response to the consultation on revisions to the capital framework for ADIs in November 2018: 

Received 12 November 2018

Received 9 November 2018

Received 9 November 2018

February 2018

Consultation on revisions to the capital framework for ADIs

 

The February 2018 consultation outlined APRA’s initial proposals on revisions to credit risk, operational risk and market risk requirements, as well as proposals for simpler prudential requirements for small, less complex ADIs. 

Submissions  

 

We received the following non-confidential submissions in response to the consultation on revisions to the capital framework for ADIs in February 2018: 

 

Note on submissions

It is APRA's policy to publish all submissions on the APRA website unless the respondent specifically tells APRA in writing that all or part of the submission is to remain confidential. An automatically generated confidentiality statement in an email does not satisfy this purpose. If you would like only part of your submission to be confidential, you should provide this information marked as 'confidential' in a separate attachment.