APRA FORMALISES THREE-TIERED APPROACH TO PROPORTIONALITY IN BANKING PRUDENTIAL FRAMEWORK

SYDNEY, May 27 -- Australian Prudential Regulation Authority issued the following media release:

The Australian Prudential Regulation Authority (APRA) has confirmed plans to formally introduce a three-tiered approach to proportionality in its prudential framework for banking.

The measure is one of a number of reforms APRA moved to introduce as part of its response to the Council of Financial Regulators' Review into Small and Medium-Sized Banks. The CFR review was undertaken in consultation with the Australian Competition and Consumer Commission (ACCC). It also aligns with APRA's strategic commitment to get the balance right between its primary mandate for financial safety and stability and other considerations such as competition and effi...