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ARTICLE · 31 MAY 2011

One step closer to Basel III - APRA's interim arrangements for Additional Tier 1 Capital instruments

Clayton Utz
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APRA has now released interim arrangements that set out modified eligibility requirements for Additional Tier 1 Capital instruments under Basel III, following its earlier clarification on APS 111 – Capital Adequacy.

AustraliaFinance and Banking
Andrew Jinks
Andrew Jinks
Eugene Bong
Eugene Bong
Joshua Knuckey
Joshua Knuckey
Louise McCoach
Louise McCoach
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APRA has now released interim arrangements that set out modified eligibility requirements for Additional Tier 1 Capital instruments under Basel III, following its earlier clarification on APS 111 – Capital Adequacy. These interim arrangements, released on Friday 27 May, are intended to assist banks that wish to issue new Tier 1 capital instruments before APRA finalises new prudential standards to give full effect to Basel III.

As these arrangements are only interim measures, APRA is also currently preparing a discussion paper on how it intends to incorporate the Basel III eligibility requirements into its finalised prudential standards. APRA indicated that this paper will be released in the coming months, with the aim of issuing final prudential standards in mid-2012.

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