July 7, 2020 / 10:04 PM / a month ago

BRIEF-Australia's APRA Updates Regulatory Approach To Loans Subject To Repayment Deferral

July 8 (Reuters) -

* AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY ANNOUNCES EXTENSION OF ITS TEMPORARY CAPITAL TREATMENT FOR BANK LOANS WITH REPAYMENT DEFERRALS

* APRA-WILL ALSO PROVIDE AN ADJUSTMENT TO NORMAL REGULATORY TREATMENT OF LOANS THAT ARE RESTRUCTURED

* APRA REFERS TO ITS MARCH DIRECTION THAT BANKS GIVING OPTION TO DEFER REPAYMENTS FOR UPTO 6 MTS NEED NOT TREAT DEFERRAL PERIOD AS PERIOD OF ARREARS

* APRA ADVISES ALL ADIS THAT REGULATORY APPROACH WILL EXTEND TO COVER MAX 10 MNTHS FROM START OF REPAYMENT DEFERRAL, OR UNTIL 31 MARCH 2021

* APRA SAYS ITS EXPECTATION IS THAT ADIS GRANT NEW/EXTENDED LOAN REPAYMENT DEFERRAL ARRANGEMENTS AFTER UNDERTAKING AN APPROPRIATE CREDIT ASSESSMENT

* APRA SAYS GIVEN VOLUME OF DEFERRALS, CONSIDERS IT REASONABLE TO PROVIDE ADIS MORE TIME TO DETERMINE BEST APPROACH FOR EACH BORROWER

* APRA SAYS WILL ALSO REQUIRE ADIS TO PROVIDE REGULAR DISCLOSURES REGARDING STATUS OF THEIR DEFERRED, RESTRUCTURED & IMPAIRED LOAN PORTFOLIOS

* APRA - MEASURES ARE TO INCENTIVISE ADIS TO CONTINUE TO SUPPORT CUSTOMERS & FACILITATING RESTRUCTURE OF ELIGIBLE LOANS IN MEASURED MANNER Source text bit.ly/3e607UD

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below