APRA orders bank crisis plans

by BN26 Oct 2011

APRA has reportedly ordered Australia's banks to contingency plans in case of an impending economic crisis.

News Ltd has reported that major banks have been told by the regulator to prepare "recovery plans" to demonstrate their strategy to survive an economic crisis. Banks reportedly have until year's end to deliver their draft contingency plans to APRA, with final plans due mid-2012.

APRA has dictated that the plans demonstrate that banks could survive a downturn more severe than the GFC, if such a downturn prevented them from raising capital or receiving emergency RBA funds.