Deputy Chair John Lonsdale expects many banks will require an uplift in capabilities, processes and oversight to meet APRA's expectations.
Completion of the final adjustments to the CVA framework represents the conclusion of outstanding policy work related to the Basel III framework.
APRA will also allow banks to treat loans restructured by 31 March 2021 as 'performing' for capital and regulatory reporting purposes.
By end-2021, financial firms will have to be able to demonstrate that their approaches to managing climate-related financial risk have been implemented and embedded in their organisations.
The FSC proposes to allow loan loss provisions and reserves to be used in calculating net worth, accumulated losses and total deposits, which have a bearing on lending capacity.
In Asia Pacific, Hong Kong, Korea and Indonesia have in particular made significant progress towards implementing the Basel III standards.
China's State Council has reportedly agreed to allow local governments to purchase convertible bonds issued by certain small and midsize banks.
Cabinet-approved legislative revisions will introduce an OTC derivatives reporting requirement, a licensing system for trade repositories, and penalties for circumventing margin rules.
An SPV back by State Bank of India will buy investment-grade debt paper with residual maturity under three months to provide NBFCs and HFCs liquidity to settle existing debt.
The latest amendment allows banks to invest in venture capital and credit funds and reduces the amount of capital they have to set aside against inter-affiliate swap trades.