Banking Regulation

Our

Expertise

“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.

 

International Approaches to Banking Regulation

“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.

 

Following the 2018-2019 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the regulatory environment for ADIs and FinTechs has become more challenging. 

The regulatory bar for ADI and FinTech Boards has increased significantly. ADI and FinTech Boards of today are expected not just to manage conventional quantitative risks (such as credit and market risk), but also increasingly existentialist ones (like CGRA and climate).

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Banking Executive 

Accountability Regime 

(BEAR)

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Licensing

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Culture, Governance, Remuneration & Accountability

(CGRA)

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Banking Code of Conduct

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Financial Sector (Shareholding) Rules

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Cyber-security & resilience

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

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Capital adequacy

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Credit risk and quality

(APS 112 & 220)

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Operational risk

(APS 114)

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Market Risk

(APS 116)

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Risk Management

(CPS 220)

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Liquidity

(APS 210)

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Related party exposures

(APS 222)

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Large and aggregate exposures

(APS 221)

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Governance

(APS 510)

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Fit & proper

(APS 520)

Audit requirements

(APS 310)

Public disclosure

(APS 330)

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)