On 21 June 2011, the Australian Prudential Regulation Authority (APRA) revoked Prudential Standard APS 150 – Capital Adequacy: Basel II Transition (Advanced ADIs) (APS 150). APS 150 set out transitional arrangements for the adoption of the Basel II capital requirements for Authorised Deposit-taking Institutions (ADIs) and prevented ADIs from decreasing their regulatory capital below a minimum limit. Following the Global Financial Crisis, new requirements (known as Basel III), are to come into effect from 1 January 2013. As ADIs will be required to hold more capital under Basel III, the transitional arrangements are no longer necessary. APRA has also revoked Reporting Standard ARS 150 – Basel II Transition (Advanced ADIs) as these are no longer relevant.
The Regulation Impact Statement was prepared by APRA and was assessed as adequate by the Office of Best Practice Regulation.