March 28, 2023
By Anjali Kochhar
Australia’s Prudential Regulation Authority (APRA) has asked banks to report their exposure to startups and crypto-related businesses, in some cases on a daily basis, according to the Australian Financial Review (AFR) report.
The APRA is an independent authority accountable to the Australian Parliament and is concerned with maintaining the safety and soundness of financial institutions to protect the interests of depositors and other stakeholders.
The APRA has “begun asking banks to declare their exposures – in some cases daily – to startups and crypto-focused ventures,” as per sources cited by APRA.
The banks have also been told to “improve their reporting around crypto assets” as the APRA seeks to gain more insight into exposures and vulnerabilities in the system in the wake of the recent collapses of crypto banks.
Crypto media platform CoinDesk contacted APRA and it referred to its statement last week that the regulator is intensifying supervision of the local banking industry and is seeking more information from them on any potential impacts.
Last October, the Council of Financial Regulators, ACCC and AUSTRAC responded to complaints from the crypto and fintech sectors about being “de-banked” because they sit outside of banks’ risk appetites.
Regulators said the banks should collect and share data about so-called de-banking activities, make their processes transparent and fair, advise the government of their risk tolerance and consider investing to improve their capability to bank these sectors.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.