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

_IMF Staff Country Reports, February 21, 2019_

## Source details

**Canonical URL:** [Australia: Financial Sector Assessment Program-Detailed Assessment of Observance-Basel Core Principles For Effective Banking Supervision](https://www.imf.org/en/publications/cr/issues/2019/02/13/australia-financial-sector-assessment-program-detailed-assessment-of-observance-basel-core-46610)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/02/13/australia-financial-sector-assessment-program-detailed-assessment-of-observance-basel-core-46610/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/02/13/australia-financial-sector-assessment-program-detailed-assessment-of-observance-basel-core-46610/index.json)
- [Bundle manifest](/en/publications/cr/issues/2019/02/13/australia-financial-sector-assessment-program-detailed-assessment-of-observance-basel-core-46610/bundle-manifest.json)

## Bibliographic details
- Published: February 21, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484398982.002

---

### Scope and methodology
- 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.

### Key findings
- 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 coverage and keywords
- 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

---

## Content in this bundle

- **1. The 2012 Revised Core Principles**
  - [1. The 2012 Revised Core Principles (Markdown version)](/-/media/files/publications/cr/2019/1ausea2019006.pdf.md){rel="alternate" type="text/markdown"}
  - [1. The 2012 Revised Core Principles (PDF)](/-/media/files/publications/cr/2019/1ausea2019006.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2019/02/13/australia-financial-sector-assessment-program-detailed-assessment-of-observance-basel-core-46610_