Regulatory AlertsAPS 120 Securitisation
The Australian Prudential Regulation Authority issued Prudential Standard APS 120 to require authorised deposit-taking institutions to maintain adequate capital and robust risk management frameworks for securitisation activities. The standard mandates strict separation between banks and special purpose vehicles, prohibits implicit support, and enforces clear disclosure of obligations to investors. It further specifies detailed capital adequacy calculations and deductions for credit risk associated with various securitisation exposures held in banking and trading books.
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