Financial Performance and Remediation Update
KEY REGULATORY CHANGES IMPACTING CAPITAL AND FUNDING
89
Change
1HCY21
2HCY21
CY22
Capital Adequacy (APS 110)
Consult
Finalise
CY23
Implementation
CY24
CY25
Measurement of Capital (APS 111)
Consult
Finalised
Implementation
Credit Risk (APS 112/113)
Consult
Finalise
Implementation
Operational Risk (APS 115)1
Implementation
Market Risk (APS 116)
Consult
Finalise
Counterparty Credit Risk (APS 180)
Consult
Finalise
Implementation
Implementation
Interest Rate Risk in the Banking Book (APS 117)
Finalise
Implementation
Public Disclosures (APS 330)
Credit Risk Management (APS 220)
Loss-Absorbing Capacity
Remuneration (CPS 511)
Consult/Finalise
Implementation
Finalise
Implementation
Implementation
Finalised
Consult
Finalise
Implementation
Implementation
Recovery and Resolution
APRA'S REVISIONS TO ADI CAPITAL FRAMEWORK
Revisions follow the 2017 APRA benchmark of 'unquestionably
strong' capital ratios and APRA's discussion paper on 'a more
flexible and resilient capital framework for ADIs' released in
December 2020
Final prudential standards expected in November 2021, with
implementation from 1 January 2023
Overall level of capital in the system is expected to be broadly
unchanged
Interim reporting requirements to be finalised throughout 2022 and
final reporting standards to be released in 2024
APRA FUNDING & LIQUIDITY CHANGES
In September 2021, APRA announced the phasing out of the RBA's
Committed Liquidity Facility (CLF) to zero by the end of December
2022 subject to market conditions. The CLF reduction is expected
to be offset by ADIs increasing holdings of HQLA
APRA is consulting on requiring ADIs subject to LCR requirements
to hold unencumbered self-securitised assets equal to 30% of LCR
Net Cash Outflows
(1) APRA has provided the option to banks using the Advanced Measurement Approach to implement APS 115 from 1 January 2022
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