Australia: Financial Sector Assessment Program-Detailed Assessment of Observance-Basel Core Principles For Effective Banking Supervision

IMF Staff Country Reports, February 21, 2019

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Canonical URL: Australia: Financial Sector Assessment Program-Detailed Assessment of Observance-Basel Core Principles For Effective Banking Supervision

This Detailed Assessment of Observance report specifies Base Core Principles (BCP) for effective banking supervision in Australia.
The assessment required a review of the legal framework and a detailed examination of the policies and practices of the institution(s) responsible for banking regulation and supervision.
In line with the BCP methodology, the assessment focused on banking supervision and regulation in Australia and did not cover the specificities of regulation and supervision of other financial institutions.
The assessment used five categories to determine compliance: compliant; largely compliant, materially noncompliant, noncompliant, and non-applicable.

The report insists that Australian Prudential Regulation Authority (APRA) should put more focus on assessing the various components of firms’ Internal Capital Adequacy Assessment Process and other firm-wide stress testing practices.
A periodic more comprehensive assessment of banks’ risk management and governance frameworks will further enhance APRA’s supervisory approach.

Subject: Banking, Credit risk, Financial regulation and supervision, Internal audit, Liquidity risk, Market risk, Operational risk, Public financial management (PFM), Stress testing
Keywords: APRA member, APRA supervisor, CR, credit risk, Credit risk, Global, holding company, Internal audit, ISCR, Liquidity risk, Market risk, Operational risk, risk management, senior management

1. The 2012 Revised Core Principles
- 1. The 2012 Revised Core Principles (Markdown version)
- 1. The 2012 Revised Core Principles (PDF)