APS 110 Capital Adequacy

APRA issued Prudential Standard APS 110 to require authorised deposit-taking institutions to maintain adequate capital buffers against risks through a mandatory Internal Capital Adequacy Assessment Process. The standard establishes minimum risk-based capital ratios, capital conservation buffers, and countercyclical buffers while imposing strict constraints on capital distributions. It further mandates board responsibility for capital management, prior approval for planned capital reductions, and immediate notification of any breaches or adverse changes in capital adequacy.

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Australian Prudential Regulation Authority

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