meta_id 3278826

On June 29, 2026, the Australian Prudential Regulation Authority (APRA) released a consultation paper outlining targeted, risk-sensitive reforms to credit risk capital requirements and guidance for authorised deposit-taking institutions (ADIs). The consultation, titled "Getting the balance right on financial resilience – Workstream 1: Credit risk capital," forms part of APRA's broader program of capital and liquidity reforms for ADIs. The proposals aim to improve risk sensitivity in capital requirements, support productive lending, and maintain "unquestionably strong" capital settings. APRA released draft standards and guidance accompanying the consultation, including a draft Reporting Standard (ARS 112 Capital Adequacy), draft Prudential Standard (APS 112 Capital Adequacy), and draft Prudential Practice Guide (APG 112 Capital Adequacy). These documents are available in both clean and marked-up versions to facilitate stakeholder review. The consultation addresses workstream 1 of APRA's capital and liquidity reform program, focusing specifically on credit risk capital frameworks. The reforms are designed to enhance the risk sensitivity of capital requirements while supporting ADIs' ability to lend productively to the economy. Written submissions must be sent to policydevelopment@apra.gov.au by September 7, 2026. APRA will publish all submissions on its website unless respondents specifically request confidentiality in writing; automatically generated confidentiality statements do not satisfy this requirement. Submissions may be subject to requests for access under the Freedom of Information Act 1982 (FOIA), though information about APRA-regulated entities identified as confidential will be protected under section 56 of the Australian Prudential Regulation Authority Act 1998.