Capability Review: Banking Industry and Commission Inquiry

capability review: The capability review was ordered by the government after a special inquiry into finance sector misconduct, which had sparked some criticism that regulators were asleep at the wheel, according to The Independent. Though the Royal Commission inquiry ultimately left the structure of the banking industry intact, it cost several top bankers their jobs amid allegations of rampant fee-gouging and brought intense scrutiny to the regulatory system that enabled it. The Australian Prudential Regulation Authority APRA may need more resources and an expanded armory of penalties - criminal and civil - so it can have greater flexibility when enforcing the law the independent report said. APRA has a strong preference to do things behind the scenes with regulated entities, said the report, published on Tuesday, and this limits its impact and authority. APRA, formed in 1998 to oversee the money management of banks, insurers, and pension funds, has largely restricted its mandate to regulating the amounts of cash that industry players keep in reserve to ensure they can meet their obligations. Though there were sometimes good reasons for a prudential regulator to be discreet ... APRA needs to shift the dial towards a more strategic and forceful use of communication to ensure that it maximizes its impact with regulated entities the report added. (news.financializer.com). As reported in the news.