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).
December 2021
On 2 December 2021, APRA released a letter on loss-absorbing capacity for domestic systemically important banks (D-SIBs).
Letter
Finalising loss-absorbing capacity requirements for domestic systemically important banks.
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.
Response to submissions - Loss-absorbing capacity
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:
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.
Submissions may be the subject of a request for access made under the Freedom of Information Act 1982 (FOIA). APRA will determine such requests, if any, in accordance with the provisions of the FOIA. Information in the submission about any APRA-regulated entity that is not in the public domain and that is identified as confidential will be protected by section 56 of the Australian Prudential Regulation Authority Act 1998 and will therefore be exempt from production under the FOIA.