Australia: Financial Sector Assessment Program-Detailed Assessment of Observance-Basel Core Principles For Effective Banking Supervision

Australia: Financial Sector Assessment Program-Detailed Assessment of Observance-Basel Core Principles For Effective Banking Supervision
ISBN-10
1484399315
ISBN-13
9781484399316
Series
Australia
Category
Business & Economics
Pages
281
Language
English
Published
2019-02-14
Publisher
International Monetary Fund
Author
International Monetary Fund. Monetary and Capital Markets Department

Description

Since the last Financial Stability Assessment Program (FSAP), the Australian Prudential Regulation Authority (APRA) has kept an active pace in implementing reforms to enhance the resilience of the Australian financial system. APRA has implemented key elements of the international regulatory reform agenda, at times going beyond the agreed minimum standards to provide additional resilience. APRA has focused on strengthening the capital framework, implementing Basel III liquidity standards, reinforcing sound mortgage lending standards, improving governance and accountability, and strengthening crisis management and preparedness. Since some of these reforms have not been fully completed, they remain on APRA’s priority agenda. Other broad policy reforms have been also enacted, including: a cross-industry risk management standard, a governance and risk management framework for conglomerates, and a phased approach to licensing. In addition to these policy developments, APRA has also taken steps to align its resources to evolving market needs. It has restructured its specialist risk and supervision teams to develop a new risk and data analytics function, bringing together specialists in statistics, industry analysis, and risk, to best harness this collective expertise. In accordance with its risk-based approach, APRA has also focused its supervisory activities more on reviewing banks’ practices and underwriting standards in the area of residential mortgages and commercial real estate lending, in addition to other risk areas.

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