APRA's banking shake-up to bring better view
APRA has put up a discussion paper and draft amendments ahead of possible disclosure reforms.
The proposed changes to disclosures relate to:
- the leverage ratio
- the liquidity coverage ratio (LCR)
- global systemically-important banks (G-SIBs)
APRA says it wants to set up “post-crisis reforms that aim to promote a more resilient banking sector, and are intended to improve market discipline and transparency”.
The Authority wants a minimum leverage ratio reporting requirement for authorised deposit-taking institutions (ADIs).
APRA proposes that those ADIs subject to the LCR disclose data in relation to their ratios, and provide sufficient qualitative discussion to enable market participants to understand their liquidity risk profile.
APRA has also proposed that the four major Australian ADIs — Commonwealth Bank of Australia, Australia and New Zealand Banking Group Limited, National Australia Bank and Westpac Banking Corporation — disclose more information, based on the G-SIB identification methodology.
There are other changes planned too, all of which can be found on the APRA website.
Written submissions on the proposals are open until October 31.