Regulatory AlertsAPS 111 Capital Adequacy: Measurement of Capital
The Australian Prudential Regulation Authority issued this standard to define the characteristics and regulatory adjustments required for authorised deposit-taking institutions to qualify instruments as Common Equity Tier 1 or Tier 2 capital. It mandates that capital instruments must be capable of absorbing losses on a going-concern or gone-concern basis and prohibits features that hinder recapitalisation or compromise financial strength. The document establishes detailed eligibility criteria for components such as paid-up shares, retained earnings, and provisions, while requiring board responsibility and APRA approval for complex or non-standard instruments.
Share