In an update on regulatory cost savings released last week, APRA said submissions from regulated entities, including banks, noted concerns with the system, known as D2A ('Direct to APRA').
“In particular, that it is not as easy to use as more modern technology and needs to be updated,” the regulator said.
APRA noted in its response to the interim report of the Financial System Inquiry that it considers the future life of D2A to be limited.
However, the regulator announced this week that any replacement data collection system is likely to cost “in the tens of millions of dollars”.
“While the benefits are likely to be substantial, APRA does not currently have funding for such a major project,” it said.
“APRA will investigate potential replacement systems for D2A when this becomes feasible.”