Banking, Insurance, Life Insurance, Health Insurance and Superannuation (prudential standard) determination No. 4 of 2023
Financial resources and loss-absorbing cFinancial resources and loss-absorbing capacity
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Financial resources and loss-absorbing capacity
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An APRA-regulated entity must maintain the financial resources required to support the resolution plan.
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APRA may require an APRA-regulated entity that is not an RSE licensee to maintain an amount of loss-absorbing capacity to support the resolution plan:
(a) for an ADI, APRA may adjust its Total Capital prudential capital requirement under Prudential Standard APS 110 Capital Adequacy; and
(b) for a general insurer, life company or private health insurer, APRA may adjust its prudential capital requirement under Prudential Standard GPS 110 Capital Adequacy or Prudential Standard LPS 110 Capital Adequacy, or a capital adequacy supervisory adjustment under Prudential Standard HPS 110 Capital Adequacy.