The Australian Prudential Regulation Authority (Apra) has
urged Asias legal community to broaden its compliance
Accepting IFLRs Award for services to financial
regulation at last weeks IFLR Asia Awards, the
John Laker, said adherence to black letter rules and a
narrow compliance focus were not enough to ensure prudent risk
Over the past six months, the world has been braced for a
major aftershock from the global financial crisis, he
said. Market sentiment remains fragile and will remain so
until European governments are able to demonstrate tangible
progress in dealing with their sovereign debt crisis.
One of the main lessons from the financial crisis was the
importance of ensuring that robust regulation is reinforced by
effective hands-on supervision, he said.
Australian banks had very little exposure directly to Europe
or European banks. They are profitable, well-managed and
well-capitalised but as substantial borrowers in global funding
markets they would inevitably be affected by any return to the
acute risk aversion that plagued those markets in late 2008, he
Neither Australias banks or Apra itself can
afford any sign of complacency; hence Apra will be maintaining
its current intensity of supervision of the Australian
financial system for a time to come, he said.
We are a cautious and conservative supervisor and at
this junction we see no reason to begin to return our troops to
the barracks, he said.
To that end, the regulator would continue its policy focus
Basel III capital and
liquidity reforms. We will be releasing further
details on these reforms over the coming months, he
Apra had worked hard to ensure Australia had a robust
regulatory framework, to build a team of astute and confident
supervisors willing to back their judgment and a supervisory
approach that is forward-looking and risk-based, he said.
This award is testament to that hard work and to a
team effort, he added.