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The Australian Prudential Regulation......>

AUSTRALIA
AUSTRALIA: The Australian Prudential Regulation Authority (APRA) has released
the key findings of a stress testing assessment it carried out on authorised
deposit-taking institutions (ADIs). "Over 2018-19, APRA conducted a qualitative
assessment of the internal stress testing capabilities of 28 ADIs, focusing on
governance, scenario development and use of stress testing. APRA's assessment
identified a number of areas requiring ongoing improvement among ADIs, which it
has outlined today in a letter to industry. As an integral part of risk
management, stress testing helps enhance the readiness of institutions to
withstand adversity by improving their understanding of risk, enhancing capital
management, informing recovery planning and reducing the likelihood of failure
and resolution. APRA intends to consult with industry in the second half of 2020
on a prudential practice guide on stress testing to promote industry better
practice and consistency."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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