The world of finance is complicated. There’s plenty of opportunity for conflicts of interest, not to mention unscrupulous operators. For the public to save with banks and invest in stocks and bonds, they have to know the system is fair. That’s just one reason that every country needs some financial regulation. In Australia, APRA is mainly responsible for this function.
APRA is an acronym for Australian Prudential Regulation Authority. This is a statutory body that’s able to enforce rules in the banking, insurance and other financial industries that operate within the country. The Australian government created APRA and outsources this function to it because this organisation is able to be more efficient and focused than general law enforcement agencies. Finance is complicated. Unraveling financial crime takes specialized knowledge and lots of attention to detail.
APRA first came into being in 1998. This organization checks up on businesses like banks and insurers to make sure they’re adhering to industry standards. APRA is also empowered to create some industry standards. APRA acts to keep the savings of Australian people safe and help keep the country’s financial system stable. This isn’t a task that comes up frequently. It’s not often that there are runs on the banks these days. But when it does become necessary, APRA is up to the challenge.
The Prudential Regulation Authority issues licenses to banks and credit unions in Australia. Foreign banks that seek to advertise in Australia and maintain offices there also come under regulation from APRA. APRA generally does not interfere with foreign banks that serve foreign customers who are resident in Australia.
APRA protects Australian’s bank deposits. This organisation makes sure that banks, credit unions and other institutions have enough liquidity to meet customer demands. They also have some powers to regulate interactions with businesses in other industries. APRA creates and enforces rules for auditing and reporting within the banking industry.
In Australia, the world of stocks and other securities is regulated by a different organization. The Australian Securities and Investments Commission, or ASIC, was founded in 2001. This organisation works to regulate the markets and protect investors from fraud. They also create the rules that the financial markets must abide by. APRA and ASIC share information when needed.