Basel III - Capital Reforms

Managing new regulatory burdens

APRA proposes implementing new higher capital requirements as soon as 2013, well ahead of the international timetable.

APRA's discussion paper, released on 6 September 2011, focuses on reforms aimed at strengthening the capital framework for all local banks, building societies and credit unions.

In issuing the paper, APRA reiterated the philosophy behind their approach as seeking to strike a balance between the fundamental need to ensure that capital held by financial institutions in Australia is genuinely available to absorb losses and the industry's desire for greater international consistency.

The attached document on capital reforms identifies the key changes and potential impacts arising from the proposed changes.