The Australian Prudential Regulation Authority (APRA) is soliciting stakeholder feedback on proposed amendments to ARS 110.0, guidelines for capital adequacy reporting by financial institutions.
The Australian Prudential Regulation Authority (APRA) has invited public consultation on major changes to its reporting framework for capital adequacy under ARS 110.0. The proposed amendments aim to enhance the transparency and effectiveness of financial institutions’ capital adequacy disclosures and align with global regulatory standards.
These changes are a part of APRA’s continuous refinement of its regulatory approaches to meet standards for both domestic and international financial stability. According to the consultation paper by APRA, the new reporting requirements aim to strengthen the consistency of capital adequacy metrics while providing a clearer picture for stakeholders on financial resilience. The changes are expected further to enhance the quality of capital reporting, giving a more realistic assessment of risk exposure.
The APRA is calling for industry feedback from banks, insurers, and superannuation funds in refining the proposed reporting framework. The 60-day consultation period will be completed early 2025 with final submissions to be implemented later in the year.
This is part of broader efforts to strengthen the resilience of the financial sector following the global regulatory shift towards more stringent capital requirements after the 2008 financial crisis. Industry experts welcomed the proactive approach taken by APRA, emphasizing that transparency will be key to enhancing stability in the financial system.
The views of all stakeholders are strongly encouraged, particularly in regard to the proposed effects on processes of reporting, compliance costs, and confidence in financial markets.
