The Australian Prudential Regulation Authority (APRA) has published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in overseas deposit-taking and insurance subsidiaries.
The FAQs are relevant to authorised deposit-taking institutions (ADIs) that hold these investments via holding companies and confirm that ADIs can use the indirect equity investment provisions in Prudential Standard APS 111 Capital Adequacy: Measurement of Capital (APS 111) to determine the capital treatment for these exposures.
The FAQs are available on the APRA website at: Capital treatment of investments in overseas deposit-taking and insurance subsidiaries – Frequently asked questions.
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