Definition:
The Australian Prudential Regulation Authority (APRA) is, not surprisingly, the prudential regulator of the financial services industry in Australia. But what does "prudential regulation" mean and what does APRA do?
In a nutshell APRA sets and enforces rules designed to ensure that the institutions it oversees are able to meet their financial obligations to the public. For example that banks maintain certain capital adequacy ratios so they don't run out of cash.
APRA describes its role as encompassing the oversight of: - banks,
- credit unions,
- building societies,
- general insurance and reinsurance companies,
- life insurers,
- friendly societies, and
- most super funds.
Amongst other powers to protect depositors, insurance policy holders and members of regulated super funds, APRA has power to take enforcement measures, such as disqualification from holding senior positions in the financial services industry. As at mid 2005 around 80 people have been disqualified from holding senior office by APRA.
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