APRA to face parliamentary scrutiny

The review will examine the Australian Prudential Regulation Authority’s (APRA) performance and operation of its oversight of banks, credit unions, building societies, insurance and members of the superannuation industry.

Liberals MP and chair of the committee Sarah Henderson outlined that APRA will also be questioned about its enforcement of lending measures, as well as its inquiry into the Commonwealth Bank, the Banking Executive Accountability Regime (BEAR) and Australia’s superannuation arrangements.

“[The] hearing will provide the committee with the opportunity to question APRA on its performance and operation, including measures to reinforce sound lending practices and ensure that Australian banks remain prudentially strong,” Ms Henderson said.

“Other areas of interest for the committee include APRA’s prudential inquiry into the Commonwealth Bank of Australia, the new Banking Executive Accountability Regime (BEAR) and measures to strengthen the Australian superannuation system, particularly improving fund performance and outcomes for members.”

In February, the committee also announced that it intends to hold public hearings in Canberra on the 11th and 20th of October 2018 to further investigate Australia’s lending practices.

Ms Henderson noted that the hearings are designed to scrutinise the banks on the findings of the financial services royal commission which are set to be released on 30 September 2018.

The committee published reports in November 2016, April 2017 and December 2017 containing recommendations for industry reform, some of which have been implemented by the federal government. 

[Related: Parliamentary committee to grill major banks]