Mid-sized banks set to benefit from APRA’s move to streamline IRB accreditation

The ABA welcomes APRA’s proposals to make the internal ratings-based (IRB) accreditation process simpler and more transparent, giving mid-sized banks a competitive boost.

ABA CEO Simon Birmingham said the changes would support competition and deliver better outcomes for customers.

“This is a practical and sensible pro‑competition step from APRA,” Mr Birmingham said.

“When fully implemented, customers will get the benefits of stronger competition without compromising safety.

“Streamlining these rules will give smaller banks certainty so they can invest in their systems to deliver value for customers.

“At the same time, these reforms will keep capital standards strong across the industry while allowing a sensible level of flexibility.

“APRA’s announcement today is a welcome early step towards implementing the Council of Financial Regulators’ recommendations for a more level playing field for small and mid-tier banks.

“The ABA advocated for more proportional regulation, welcomed the CFR acceptance of this principle, and is pleased to see tangible progress being made. We look forward to reviewing and engaging on the detail of this APRA announcement.”

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