Capital as defined by the prudential statements

A legislative framework that applies minimum standards to all types and suppliers of credit across Australia

APRA's system to determine the response APRA should make to the outcomes of PAIRS ratings

Independent dispute resolution service that considers complaints made against banks and their affiliates that operate in Australia

The Commonwealth legislation introduced to improve operations in the financial services sector (introduced in response to the Wallis Report)

ARPA-regulated ADIs must hold a CAR of at least 8 per cent. CAR is calculated as capital/risk-adjusted assets

The Commonwealth legislation that empowers APRA to collect information from financial institutions

Collateral that APRA recognises for the purposes of including in Tier 1 or Tier 2 capital calculations

The Commonwealth legislation that regulates ownership of financial institutions

The risk of loss from inadequate or failed internal processes, people and systems from external events

The Commonwealth legislation that governs foreign acquisition of Australian assets

The risk that the other party to an agreement will default or not meet its obligations

A multiplier that weights the risk of an institution's assets

APRA's system to assess the probability that a regulated institution will fail and the effect such a failure would have on the financial system

The Commonwealth legislation that contains the Uniform Consumer Credit Code

The body responsible for maintaining competition in the Australian economy. In the financial sector, it will not allow any merger if it would result in a substantial lessening of competition, unless that is in the national interest.

The process in which regulations are evaded, new regulations are enacted to close the loopholes, new evasion strategies and products are developed, new regulations are adopted to curb the innovations and so on

The body that monitors and coordinates all activities in relation to the Uniform Consumer Credit Code to ensure consistency across Australia

The risk that the profitability or net worth of the bank will change because of movements in market prices

The Commonwealth legislation governing the RBA

Items of capital other than Tier 1 capital. Comprises Upper Tier 2 and Lower Tier 2 capital.

Commonwealth legislation that regulates who has authority to conduct a banking business

The maintenance of adequate levels of capital to enable an ADI to continue to operate in the event of unanticipated losses or problems

A compulsory strategy an ADI must have to ensure it has adequate funds to meet its obligations as and when they fall due

The body responsible for reviewing foreign investment proposals and making recommendations on them to the federal treasurer

High-quality capital items as defined by the prudential statements

The event that occurs when depositors lose confidence in banks in general and 'run' to redeem their deposits quickly