On 14 August, APRA released a Discussion Paper Improving the transparency, comparability and flexibility of the ADI capital framework, which considers whether to alter the way ADIs’ capital requirements are calculated and disclosed to facilitate greater domestic and international comparability and transparency of ADI capital strength.

APRA stated that though Australia’s capital framework is largely based on internationally agreed minimum standards set by the Basel Committee on Banking Supervision, APRA takes a more conservative approach to the definition of capital and the calculation of risk-weighted assets in some areas.  Consequently, Australian ADIs typically have lower reported capital ratios than overseas peers with comparable capital strength.