APRA has written to ADI’s advising on the progress of consultation on implementation of the adjusted Basel II framework.

Subject to consultation on market risk revisions, APRA expects that the final prudential standards, prudential practice guides, reporting standards and reporting forms arising from the adoption of the Basel II enhancements and other changes APRA proposed in its Discussion Paper and its May 2010 consultations on reporting requirements, will be released in early 2011 and
are intended to become effective from 1 January 2012.

The capital and liquidity reforms currently under development by the Basel Committee are proceeding independently, and are expected to be announced in December 2010. APRA’s intent is to conduct extensive consultations on these larger reform matters during 2011.