Regulatory AlertsAPG 112 Capital Adequacy: Standardised Approach to Credit Risk
The Australian Prudential Regulation Authority issued Prudential Practice Guide APG 112 to provide guidance to authorised deposit-taking institutions on complying with the standardised approach to credit risk under Prudential Standard APS 112. The document outlines prudent practices for classifying property and non-property exposures, determining risk weights, and calculating risk-weighted assets for regulatory capital purposes. It details specific criteria for standard versus non-standard loans, serviceability assessments, and the application of credit risk mitigation techniques across various asset classes.
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