APRA announces revised Prudential Standard APS 111 Talk to us Phone us Email us Breadcrumbs UniBank About Us Member news & media 2014 APRA announces revised Prudential Standard APS 111 13 May 2014 13 May 2014 APRA announces revised Prudential Standard APS 111 As announced by the Customer Owned Banking Association (COBA) in its media release dated 15 April 2014, the Australian Prudential Regulation Authority (APRA) has revised Prudential Standard APS 111 Capital Adequacy: Measurement of Capital to give credit unions, building societies and mutual banks more flexibility to issue regulatory capital instruments while retaining their structure. The changes announced by APRA are a welcome step toward better accommodation of the customer owned banking model. COBA’s CEO, Louise Petschler has stated “When APRA implemented the Basel III capital changes 16 months ago, customer owned banking institutions were confronted with a much reduced capacity within the new rules to issue regulatory capital instruments. This was because the rules were designed for large, listed banks and not for customer owned banking institutions. “APRA has worked with COBA to resolve this problem and today’s announcement represents significant progress. COBA members are strongly committed to retaining their highly successful customer focused model but they also need additional capacity to raise capital when needed to grow and take strategic opportunities. “Our sector is very strongly capitalised and will always rely on retained earnings as its primary source of regulatory capital. This change provides additional flexibility for capital management.”
