Powered by MOMENTUM MEDIA
subscribe to our newsletter

Banks to pay up to $6m each to fund regulator

APRA has revealed it will pay particular attention to housing lending standards next financial year as discussions begin on its budget.

The federal Treasury has released a paper calling for industry views on the levies it proposes to charge to help fund the prudential regulator’s budget.

APRA has been allocated a budget of $125.1 million for 2015/2016, which is up 2.2 per cent on the current financial year.

Banks and other ADIs will have to pay levies of up to $6 million each to help fund APRA’s activities if the funding proposals are approved.

The suggested levies are $6 million for organisations with asset bases above $500 billion, $3.2 million for those with asset bases between $100 billion and $500 billion, and $1.2 million for those with asset bases between $25 billion and $100 billion.

Advertisement
Advertisement

Organisations with asset bases between $5 billion and $25 billion would pay $240,000, those with asset bases between $500 million and $5 billion would pay $24,000, and those with asset bases between $50 million and $500 million would pay $3,400.

APRA is expected to devote 46 per cent of its time and budget to supervising ADIs, 26 per cent to the insurance sector, 17 per cent to general insurance and 11 per cent to life insurance.

The Treasury paper said APRA will continue to adopt a risk-focused approach in 2015/2016.

“Its supervisory oversight will focus on how regulated institutions respond to emerging risks as the Australian economy adapts to the ending of the minerals investment boom,” it said.

“In the ADI sector, APRA will pay particular attention to housing lending standards in the current context of robust competition and strong price pressures in some housing markets.”

PROMOTED CONTENT


APRA’s policy-related activity will include responding to the recommendations of the Financial System Inquiry and monitoring the impact of the prudential reforms it has introduced since the GFC, according to the Treasury paper.

Banks to pay up to $6m each to fund regulator
mortgagebusiness

Latest News

As the new chief and chair are handed the keys in 2022, they will be tasked with continuing the bank’s push for growth in the coming years...

The ACCC has confirmed that three of the big four banks are now accredited data recipients under the Consumer Data Right. ...

The major bank is piloting a zero-interest rate digital credit card, with plans to release it later this year, following similar moves by it...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.