Authority and application
- This Prudential Standard, made under section 11AF of the Banking Act 1959 (the Act), applies to all authorised deposit-taking institutions (ADIs) authorised under the Act. The Guidance Notes AGN 110.1 Conglomerate Group (AGN 110.1), AGN 110.2 Non-Consolidated Subsidiaries (AGN 110.2), AGN 110.3 Level 3 Assessment (AGN 110.3), AGN 110.4 Risk-based Capital Adequacy Framework (AGN 110.4), AGN 110.5 Higher Minimum Ratios (AGN 110.5) and AGN 110.6 Reductions in Capital (AGN 110.6) form part of this Prudential Standard.
- Foreign ADIs (which have the same interpretation as in Division 1B of the Act) operating through branches in Australia are not subject to this Prudential Standard, Prudential Standards APS 111 Capital Adequacy: Measurement of Capital (APS 111), APS 112 Capital Adequacy: Credit Risk (APS 112) and APS 113 Capital Adequacy: Market Risk (APS 113). They must, however, be subject to comparable capital adequacy standards in their home country.