APRA’s Basel III Capital Adequacy Announcement
APRA has released for consultation its draft prudential standards to give effect to the implementation of the Basel III capital reforms in Australia which start on 1 January 2013.
Accompanying this announcement is APRA’s response to the earlier submissions it had received on its previously released implementation proposals.
APRA’s previously proposed timeline for implementing the capital changes will remain unchanged. As a consequence Australian ADIs will have to meet higher minimum requirements sooner than required by the timelines for the Basel III capital reforms.
APRA’s proposed adoption of a more conservative approach to the treatment of capital deductions compared with the Basel III capital reforms is also largely unaltered.
The draft contains the clarification of a large number of technical issues.