APRA suggests “major uplift” to transparency

The proposed change intended to enhance accountability and encourage competition

APRA suggests “major uplift” to transparency


By Madison Utley

APRA is considering “substantially increasing” the data made publicly available on authorised deposit-taking institutions (ADIs), including banks, credit unions and building societies.

According to the regulator, the greater transparency is intended to increase accountability, both supporting competition and lifting overall industry standards.

The proposition would see all data collected for its quarterly ADI publications shifting to be considered non-confidential, allowing it to be published as compared to the less than 1% that APRA currently publishes. The change would lift the legal restrictions contained within the Australian Prudential Regulation Authority Act 1998.

From 2020, APRA proposes publishing current entity-level ADI data related to the already published industry-level quarterly data, historical data and the commentary from individual ADIs explaining material revisions to, or large movements in, their data.

“APRA is committed to increasing transparency about the institutions and industries we regulate,” said APRA executive director for cross-industry insights and data, Sean Carmody.

“Under these proposed changes, APRA intends to publish – for the first time – a range of information about individual ADIs, including their financial performance and property exposures.

“As with the recent inclusion of data from credit unions and building societies in our Monthly ADI Statistics publication, these changes are aimed at further strengthening the ADI sector by enhancing accountability and encouraging competition. They will also assist other regulatory agencies that rely on APRA data, as well as analysts, policymakers and others who use our publications.”

Under the APRA Act, APRA must consult ADIs and their representatives, including industry associations, before determining any new data to be non-confidential.

A 12-week consultation is now underway and concludes on 28 February 2020.

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