APRA continues to scrutinise despite improvements
(26 August 2010 – Australia) Australia’s Prudential Regulatory Authority (APRA) has continued to closely monitor bank liquidity and funding post global financial crisis, despite an improvement.
APRA’s chairman, John Laker, acknowledged earlier in the week that conditions had improved on the banking landscape.
However, Mr Laker added, sentiment in offshore markets continued to be buffeted as a result of the European sovereign debt crisis.
Mr Laker said the regulator would continue to scrutinise credit quality and provisioning levels, as well as banks’ exposure to the commercial property sector.
We're also looking at operational risks, with significant mergers and acquisitions activity, and even core banking system upgrades, Mr Laker added.
The prudential regulator is currently heavily involved in the formulation of global capital and liquidity reforms that will be considered at the next G20 leaders summit in Seoul in Novemeber.
The reform is expected to be released in December.
There's more work to be done on calibration of the global package, so we will wait until that's all settled before we start the process of local consultation, Mr Laker said yesterday.
APRA needs to know the global framework before we discuss with the industry how to implement it, Mr Laker added.
The final step of phasing in the reforms is expected by the end of 2012, by which time the economic recovery will hopefully be assured.
However, Mr Laker added, sentiment in offshore markets continued to be buffeted as a result of the European sovereign debt crisis.
Mr Laker said the regulator would continue to scrutinise credit quality and provisioning levels, as well as banks’ exposure to the commercial property sector.
We're also looking at operational risks, with significant mergers and acquisitions activity, and even core banking system upgrades, Mr Laker added.
The prudential regulator is currently heavily involved in the formulation of global capital and liquidity reforms that will be considered at the next G20 leaders summit in Seoul in Novemeber.
The reform is expected to be released in December.
There's more work to be done on calibration of the global package, so we will wait until that's all settled before we start the process of local consultation, Mr Laker said yesterday.
APRA needs to know the global framework before we discuss with the industry how to implement it, Mr Laker added.
The final step of phasing in the reforms is expected by the end of 2012, by which time the economic recovery will hopefully be assured.
Subscribe