APRA releases changes to Mutual Equity Interests capital for mutual ADIs

By David Jacobson The Australian Prudential Regulation Authority (APRA) has released its final Prudential Standard APS 111 Capital Adequacy: Measurement of Capital (APS 111) containing changes to the Mutual Equity Interests capital framework for mutually owned authorised deposit-taking institutions (ADIs) to provide these ADIs with more flexibility in their capital management. The revised prudential standard APS111 will come into effect from 1 January 2018.
Facilitating the ability of mutually owned ADIs to directly issue Common Equity Tier 1 (CET1) capital instruments was the first recommendation of the recent Independent Facilitator Review into the mutual ADI sector .
Mutual equity interests
The Mutual Equity Interest (MEI) framework …read more

Source:: Bright Law

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