{"id":"F2025L00651","name":"Banking (prudential standard) determination No. 1 of 2025","slug":"banking-prudential-standard-determination-no-1-of-2025","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":106434,"registerId":"commonwealth-F2025L00651-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Interpretation","sectionType":"section","heading":"Interpretation","content":"![Commonwealth Coat of Arms](image.001.png)\n\nBanking (prudential standard) determination No. 1 of 2025\n\nPrudential Standard APS 111 Capital Adequacy: Measurement of Capital\n\nBanking Act 1959\n\nI, Sean Carmody, a delegate of APRA:\n\n    under subsection 11AF(3) of the Banking Act 1959 (the Act), REVOKE Banking (prudential standard) determination No. 5 of 2022, including Prudential Standard APS 111 Capital Adequacy: Measurement of Capital made under that determination; and\n\n    under subsection 11AF(1) of the Act, DETERMINE Prudential Standard APS 111 Capital Adequacy: Measurement of Capital in the form set out in the schedule, which applies to all ADIs and authorised NOHCs to the extent provided in paragraphs 2 to 5 of the prudential standard.\n\nThis instrument commences on 1 July 2025.\n\nDated: 13 April 2025\n\nSean Carmody\n\nExecutive Director\n\nPolicy and Advice Division\n\n###### Interpretation\n\n###### In this instrument:\n\nAPRA means the Australian Prudential Regulation Authority.\n\nADI, authorised NOHC and prudential standard have their respective meanings given in subsection 5(1) of the Act.\n\n  \n\nSchedule\n\nPrudential Standard APS 111 Capital Adequacy: Measurement of Capital comprises the document commencing on the following page.","sortOrder":0},{"sectionNumber":"In this instrument:","sectionType":"section","heading":"In this instrument:","content":"###### In this instrument:\n\nAPRA means the Australian Prudential Regulation Authority.\n\nADI, authorised NOHC and prudential standard have their respective meanings given in subsection 5(1) of the Act.\n\n  \n\nSchedule\n\nPrudential Standard APS 111 Capital Adequacy: Measurement of Capital comprises the document commencing on the following page.","sortOrder":1}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"The instrument revokes Prudential Standard APS 111 as determined in 2022 and substitutes a new APS 111, so the regulatory instrument governing measurement of capital for ADIs and authorised NOHCs is formally replaced. The supplied text does not include the schedule containing the new standard's substantive provisions, so whether the substantive scope or requirements have materially changed from the 2022 determination cannot be confirmed from this instrument alone."},"complexity_factors":["Legal cross-reference to the Banking Act (subsections 11AF(1) and 11AF(3)) requiring statutory delegation and formal revocation/creation steps","Applicability to regulated entities (all ADIs and authorised NOHCs) which raises sector-wide compliance implications","Absence of the schedule text in the supplied material — substantive requirements of the new APS 111 are not visible here","Administrative details present (revocation, determination, commencement date) but lack of substantive provisions reduces interpretive complexity","Delegated decision-making (APRA delegate) creates delegated-administrator discretion and a clear provenance for the instrument"],"plain_english_summary":"This instrument revokes the 2022 APS 111 determination and substitutes a new Prudential Standard APS 111 (Measurement of Capital). It applies to all authorised deposit-taking institutions (ADIs) and authorised non-operating holding companies (NOHCs) and takes effect on 1 July 2025. The change is made by an APRA delegate under the Banking Act and mechanically replaces the previous capital-measurement rulebook for those entities, shifting compliance to the new standard from the commencement date."},"kimi_summary":{"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"This appears to be a standard periodic update of prudential standards. The instrument maintains the same scope as its predecessor — regulating capital adequacy measurement for ADIs and authorised NOHCs. Without the full text of the new APS 111, it's impossible to assess whether the substantive standard has expanded, but the enabling instrument itself shows no scope creep."},"complexity_factors":["This is a 'determination' instrument that incorporates by reference a separate prudential standard document (APS 111) that is not fully reproduced in the legislative text","The actual substantive content of APS 111 is not included in this instrument — it merely references a schedule 'commencing on the following page' which is absent from the provided text","Heavy reliance on defined terms from the Banking Act 1959 (subsection 5(1)), creating cross-referencing complexity","Multiple layers of regulatory architecture: the Banking Act → the determination → the prudential standard → likely further technical attachments or guidance","Applies differentially based on paragraphs 2-5 of the prudential standard, indicating conditional application logic not visible in this instrument","Revocation and replacement mechanism creates temporal complexity regarding transitional arrangements between the 2022 and 2025 versions"],"plain_english_summary":"This instrument revokes the 2022 banking capital rules and replaces them with an updated Prudential Standard APS 111 that changes how authorised institutions must measure regulatory capital. It applies to ADIs (banks, credit unions, building societies) and authorised NOHCs. The update affects how much capital counts toward the loss-absorbing buffer, influencing lending capacity and depositor protection. Effective 1 July 2025."}},"importantCases":[],"_links":{"self":"/api/acts/banking-prudential-standard-determination-no-1-of-2025","history":"/api/acts/banking-prudential-standard-determination-no-1-of-2025/history","analysis":"/api/acts/banking-prudential-standard-determination-no-1-of-2025/analysis","conflicts":"/api/acts/banking-prudential-standard-determination-no-1-of-2025/conflicts","importantCases":"/api/acts/banking-prudential-standard-determination-no-1-of-2025/important-cases","documents":"/api/acts/banking-prudential-standard-determination-no-1-of-2025/documents"}}