Australian Prudential Regulation Authority

Section 1: Overview, appropriations and budget measures summary

Agency overview

The role of the Australian Prudential Regulation Authority (APRA) is developing and enforcing regulation that promotes prudent behaviour by authorised deposit-taking institutions, insurance companies, superannuation funds and other financial institutions with the key aim of protecting the interests of their depositors, policy holders and members.

Prudential regulation focuses on the quality of an institution's systems for identifying, measuring and managing the various risks in its business.

In carrying out this role, APRA will enhance public confidence in Australia's financial institutions through a framework of prudential regulation, which balances financial safety and efficiency, competition, contestability and competitive neutrality. This is achieved by:

• the formulation and promulgation of prudential policy and practice to be observed by regulated institutions;

• effective surveillance and compliance programmes and, where relevant, remediation or enforcement measures, to give effect to the laws administered by APRA and to standards issued under those laws; and

• advice to government on the development of regulation and legislation affecting regulated institutions and the financial markets in which they operate.

APRA was established by the Australian Prudential Regulation Authority Act 1998. The Commonwealth Authorities and Companies Act 1997 applies to APRA.

Appropriations and resourcing

The total appropriation for APRA in the 2003-04 Budget is $68.6 million. Table 1.1 on the following page provides this detail.

Table 1.2 details funding provided for new budget measures in 2003-04.

Australian Prudential Regulation Authority - appropriations 2003-04

Table 1.1: Appropriations and other revenue

(1) C1 and E1 refer to information provided in Table 2.1, Total resources for Outcome 1. K1 refers to information provided in Table 3.1, Budgeted Agency Statement of Financial Performance.

(2) Refer to Table 3.1, Budgeted Agency Statement of Financial Performance for application of agency revenue.

(3) Revenue from other sources includes other revenues from government (for example, resources free of charge) and revenue from other sources (for example, goods and services). Non-appropriated agency revenues are detailed in Table 1.3.

Note: Percentage figures indicate the percentage contribution of revenues from government (agency appropriations) to the total price of outputs, by outcome.

Measures - Australian Prudential Regulation Authority summary

Table 1.2: Summary of measures disclosed in the 2003-04 Budget

Agency revenues

Table 1.3: Agency revenues

Goods and services include cost recoveries under Sections 9 and 51 of the Australian Prudential Regulation Act 1998 for elective services. Revenue from other sources includes the recovery of cost of statistical services and work undertaken on the implementation of the Basel Accord on capital adequacy models.

Equity injections and loans

APRA does not have an appropriation for an equity injection or loan in the 2003‑04 Budget.

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