The banking regulator concedes it should take into consideration the way it can play a extra energetic function in coping with misbehaviour in monetary establishments, after it confronted blunt criticism from the Hayne royal fee.
In a submission responding to the fee’s interim report, the Australian Prudential Regulation Authority stated its response to misconduct had been “broadly acceptable,” given its principal focus was the monetary well being of banks.
Nonetheless, it agreed there was “scope” for “additional motion” in the way it and different regulators handled governance, tradition and incentives. APRA’s submission adopted harsh criticism of the regulator over an absence of motion within the interim report for the royal fee.
“Whereas traditionally APRA’s regulatory focus has largely been focused on prudential risk-taking and long-term monetary soundness, the proof earlier than the royal fee highlights the necessity for APRA to look at the means by which it could extra actively contribute to a regulatory framework that limits the potential for misconduct to happen sooner or later,” the submission stated.