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APRA clears air after tiny Tim s super for homes brain fart

APRA clears air after tiny Tim s super for homes brain fart
macrobusiness.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from macrobusiness.com.au Daily Mail and Mail on Sunday newspapers.

APRA imposes capital increases on Macquarie Bank

As a consequence of the breaches, APRA required:   Macquarie Bank to hold an operational capital overlay of $500 million, reflecting deficiencies in its management of operational risk inherent in the bank’s intra-group structure;       A 1% adjustment to the available stable funding component of its NSFR calculation.  APRA deputy chair, John Lonsdale, said: “APRA’s legally-binding prudential and reporting standards play an essential role in enabling APRA to adequately monitor risks to financial safety and stability. For one of the country’s largest financial institutions to have committed breaches of this nature is disappointing and unacceptable.  “Alongside the enforcement actions, APRA will subject Macquarie Bank to intensified supervision to address the bank’s persistent difficulties in complying with its prudential obligations. We cannot rule out further action as more information comes to light about the root causes of these breaches.” 

Is the house price bubble about to be pricked?

Australia dodged the mortgage deferral cliff, but vulnerable lenders still took on $14 billion in debt before protections expired

Australia dodged the mortgage deferral cliff, but vulnerable lenders still took on $14 billion in debt before protections expired David Adams The housing market is running hot. Loan deferrals continued to fall in February, the Australian Prudential Regulation Authority said, with just 0.5% of lending subject to deferred payments. Some $14 billion of mortgages and small business loans were under repayment deferrals through February, down from a peak of $274 billion in June 2020. But with those agreements coming to an end on March 31, some at-risk borrowers will soon be facing their first mandatory repayments in a year. Visit Business Insider Australia’s homepage for more stories.

Restricting trustees from making certain investments not in members best interests

“This includes that trustees are responsible for determining an appropriate level of diversification for each investment strategy,” the submission said. “The notion that excluding assets from a trustee’s investment universe will improve outcomes is flawed. Further, that such a decision would be made by Parliament via regulation, to apply to all trustees regardless of their investment strategy or members’ investment choices, is not in members’ interests. “The legislation also does not provide for any transitional provisions to ensure members’ existing investments aren’t adversely impacted as a result of the implementation of the provisions.” AustralianSuper noted the potential impacts of this provision were quite broad and examples included:

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