The Australian Prudential Regulation Authority (APRA) has written to all Locally Incorporated General Insurers and Authorised Non-Operating Holding Companies under the Insurance Act 1973 in relation to the announcement by the Group of Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, of a substantial strengthening of existing capital requirements for banking institutions.

APRA advises that it is likely that APRA will continue its policy of equivalent capital definitions between the ADI and insurance sectors, including any further reforms agreed by the Basel Committee as part of its review.