The Australian Prudential Regulation Authority (APRA) has released its timetable for the implementation of the capital framework reforms authorised deposit-taking institutions (ADIs), which will come into effect from 1 January 2023.

APRA has confirmed it is committed to meeting the 1 January 2023 implementation date.

Over the course of 2021, APRA intends to release final prudential standards, draft prudential practice guides (PPGs), and initial details of reporting requirements.

Over the course of 2022, APRA intends to finalise the PPGs and reporting requirements. There are a number of related policy revisions that will also be progressed next year, including the fundamental review of the trading book and public disclosure requirements.

APRA intends to conduct a parallel run of capital reporting on the new framework in late 2022.

APRA expects ADIs to be fully compliant with the revised capital framework from 1 January 2023, including the determination and reporting of capital adequacy.

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Author: David Jacobson
Principal, Bright Corporate Law
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The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.