Banking (Prudential Standards) adjustment or exclusion No. A8 of 2019

Banking (Prudential Standards) adjustment or exclusion No. A8 of 2019

To:    86400 Ltd ABN 13 621 804 813 (86400)

I, Brandon Khoo, a delegate of APRA, under paragraph 41 of Prudential Standard APS 110 Capital Adequacy (APS 110) ADJUST the prudential requirements in APS 110 in relation to 86400 in the manner specified in the attached Schedule. 

This instrument comes into force on the day it is signed.

Dated  18 July 2019

[Signed]

………………………………

Brandon Khoo

Executive General Manager

Diversified Institutions Division

Interpretation

In this Notice

APRA means the Australian Prudential Regulation Authority.

Schedule

1. Paragraph 22 of APS 110 is adjusted by replacing it with the following:

“APRA will determine prudential capital requirements (PCRs) for an ADI. The PCRs, which may be expressed as a percentage of total risk-weighted assets, an amount or a combination of both, will be set by reference to Common Equity Tier 1 Capital, Tier 1 Capital and Total Capital. PCRs may be determined at Level 1, Level 2 or both.”

2.        Paragraph 23 of APS 110 is adjusted by replacing everything occurring after the first line with the following:

“(a) a Common Equity Tier 1 Capital ratio of 4.5 per cent;

  (b)  a Tier 1 Capital ratio of 6.0 per cent;

  (c)  a Total Capital ratio of 8.0 per cent; and

  (d) Total Capital, at Level 1 and Level 2, cannot be less than the Total Capital Ratio, or $5 million, whichever is higher.

APRA may determine higher PCRs for an ADI and may change an ADI’s PCRs at any time.”