Regulatory AlertsAPS 111 Capital Adequacy: Measurement of Capital
The Australian Prudential Regulation Authority issued Prudential Standard APS 111 to establish minimum requirements for the size and composition of regulatory capital for authorised deposit-taking institutions. The standard defines eligible instruments for Common Equity Tier 1, Additional Tier 1, and Tier 2 capital, mandating that they meet strict criteria for loss absorption and quality. It further requires ADIs to apply specific regulatory adjustments and ensures that capital components are correctly categorized and reported on both Level 1 and Level 2 bases.
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