The move will increase the levels of capital and liquidity at commercial banks and facilitate lending to businesses and households.
The reforms will deliver a "robust, competitive banking system" that can continue to fulfil its critical role when the community faces challenges, APRA's Wayne Byres said.
The RBNZ is concerned that increases in highly-leveraged borrowing, if continued, could lead to emerging risks to financial stability.
To date, regional rural banks have not been permitted to access the RBI's liquidity windows or the Call/Notice market.
Panellists at a recent Regulation Asia webinar highlighted the importance of sound collateral management and data practices to manage loan loss uncertainty in the year ahead.
Deputy Governor Chuchi Fonacier spoke to Regulation Asia about planned measures to promote digital payments, help MSMEs, and further strengthen the banking sector.
Due to ongoing stress and heightened uncertainty amid the Covid-19 pandemic, the RBI wants to ensure banks can continue to conserve capital and support the economy.
APRA's John Lonsdale said the general quality of recovery plans amongst smaller banks was weaker than the regulator would like, and they may have fewer recovery options.
The framework will take effect from 1 January 2021. The additional regulatory requirements for D-SIBs have not yet been announced.
The court enforceable undertaking requires Westpac to develop an integrated plan to address all major risk governance issues, covering both financial and non-financial risks.
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