APRA remakes Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book (Advanced ADIs)
The Australian Prudential Regulation Authority (APRA) has released its response to its July 2024 consultation on the remaking of Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book (Advanced ADIs), which is due to sunset on 1 April 2025.
APRA received no submissions to its proposal to remake the standard. In response, APRA has now remade the standard as a transitional measure so that it will continue to apply after 1 April 2025 until Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book is effective on 1 October 2025.
APRA has remade the standard without amendment, except for a consequential change to update a reference to Prudential Standard APS 001 Definitions which has been replaced by Prudential Standard CPS 001 Defined terms.
The remade standard can be found at: Interest Rate Risk in the Banking Book.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.