Capital Regulation

The minimum total capital requirement for banks will increase 9% from 1 July 2024. Banks will also be expected to hold a ‘Prudential Capital Buffer'.

Securities market participants must hold core capital of at least A$500,000, up from A$100,000 currently required. One year is given for compliance.

CRIF will reduce the risk data reporting burden, increase the accuracy and consistency of the information reported, and allow for more automation.

Deposit-taking institutions, leasing companies, asset managers and insurers with assets exceeding a specified threshold are required to formulate recovery and resolution plans.

Banks have an additional six months to implement the revised frameworks on credit risk, operational risk, output floor and leverage ratio. The market risk and CVA risk frameworks are also deferred.

Bitcoin and other “Group 2 cryptoassets” will be subject to a 1250% risk weight to avoid exposing bank depositors and creditors to a loss.

The IMF recommends enhancing monitoring of lending to Mainland China, increasing oversight over banking groups, and regulating mortgage lending by non-banks.

The proposed consultation builds on an earlier paper which outlined an approach that would subject direct crypto exposures to full deductions from CET1 capital.

An interim and simplified reporting standard will apply while ADIs develop their capabilities for delivering the full suite of credit risk data collected by ARS 220.0.

The BSP has raised the limit as part of a larger set of amendments to the framework for the management of banks' open FX positions.