Banking Regulation

Following the 2018-2019 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the regulatory environment for ADIs – particularly the 4 majors - has become significantly more challenging.  APRA and ASIC have both adopted a more litigious approach to regulating ADIs – as most clearly evidenced by ASIC’s “why not litigate?” enforcement stance.   

 

The impact of this heightened regulatory scrutiny is not just limited to the 4 majors. The regulatory bar for the Boards of all ADIs has increased significantly. ADI Boards of today are expected not just to manage conventional quantitative risks (such as credit and market risk), but also qualitative and emerging ones (like CGRA and climate).

Our

Expertise

Banking Executive 

Accountability Regime 

(BEAR)

“Five years ago, bank results were mostly shaped by normal commercial strategy and competitive pressures. Now, they are driven more driven by regulation and…tax imposts.”


Brian Hartzer, former Chairman of Westpac Banking Corporation, November 2019.

 

Licensing

Culture, Governance, Remuneration & Accountability

(CGRA)

Banking Code of Conduct

Financial Sector (Shareholding) Rules

Cyber-security & resilience

We also have extensive experience in providing advice on APRA’s suite of Prudential Standards for ADIs, including the following: 

Capital adequacy

Credit risk and quality

(APS 112 & 220)

Operational risk

(APS 114)

Market Risk

(APS 116)

Related party exposures

(APS 222)

Risk Management

(CPS 220)

Large and aggregate exposures

(APS 221)

Liquidity

(APS 210)

Governance

(APS 510)

Fit & proper

(APS 520)

Audit requirements

(APS 310)

Public disclosure

(APS 330)

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Gen Advisory has in-depth insights into specialised areas.
Contact us about your specific needs.

FinTech opportunities

Overseas expansion

International Approaches to

Banking Regulation

In delivering our advisory services, Gen Advisory will also draw upon best practice guidance issued by various international regulatory authorities, including the following:

  • Basel Committee on Banking Supervision (BCBS)

  • Financial Stability Board (FSB)

  • UK Prudential Authority (PRA)

  • UK Financial Conduct Authority (FCA)

  • Basel Capital Accords (Basel I to III)

  • Basel Core Principles (BCPs)

  • US Federal Reserve (Fed)

  • Other Standard-Setting Bodies (SSBs)

“There will be another financial crisis. This is almost a certainty with a fractional reserve banking system that relies on leverage and maturity mismatch. Our job as regulators and supervisors is not to prevent future crises, but to reduce their likelihood.”

 

William Coen, Security General of the BCBS, 

November 2018.

 

Gen Advisory has in-depth insights into specialised areas.
Contact us about your specific needs.

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