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Consultation on increasing the loss-absorbing capacity of authorised deposit-taking institutions to support orderly resolution

APRA has consulted on its proposed approach for the implementation of additional loss-absorbing capacity to support the orderly resolution of Australian authorised deposit-taking institutions (ADIs).
 

Final Round - July 2019

On 9 July 2019, APRA released its response to submissions on proposed changes to the application of the capital adequacy framework designed to support the orderly resolution of a failing ADI.
 
 
APRA received the following non-confidential submissions: 
 
 

Round 1 - November 2018

On 8 November 2018, APRA released a discussion paper outlining its proposed changes to the application of the capital adequacy framework for authorised deposit-taking institutions (ADIs) to support orderly resolution in the unlikely event of failure. The proposed changes are a significant step towards building resolution capability. 
 
These changes follow the Australian Government’s 2014 Financial System Inquiry (FSI) recommendation to APRA to implement a framework for minimum loss-absorbing and recapitalisation capacity in line with emerging international practice, sufficient to facilitate the orderly resolution of ADIs and minimise taxpayer support.
 
Submissions closed on 8 February 2019. The discussion paper can be found below:
 

 

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.