APRA has written to Authorised Deposit-taking Institutions (ADIs) in relation to the announcement by the Group of Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, of a substantial strengthening of existing capital requirements for banking institutions.

The letter states that APRA has begun work on developing draft prudential standards, prudential practice guides and reporting requirements to give effect to these reforms in Australia. APRA anticipates that it will begin consultation on the reforms in 2011 and continue into 2012.

It also discusses transitional arrangements.