Document ID: chunk:federal_register_of_legislation:F2024L01518:body:0:p8
Version: federal_register_of_legislation:F2024L01518
Segment Type: other
Provision Reference: 
Character Range: 20285–23185

IRB ADI:
         1.           is a member of a Level 2 group, the minimum leverage ratio requirement will apply only at Level 2; and
         2.           is not a member of a Level 2 group, the minimum leverage ratio requirement will apply at Level 1.
 3.          APRA may apply a leverage ratio requirement to a standardised ADI.

Reductions in capital
 1.          An ADI or authorised NOHC (as applicable) must obtain APRA's approval prior to making any planned reduction in capital, whether at Level 1 or Level 2.
 2.          A planned reduction in an ADI's capital includes:
         1.           a share buyback or the redemption, repurchase or repayment of any qualifying Common Equity Tier 1 Capital, Additional Tier 1 Capital and Tier 2 Capital instruments issued by the ADI (or by other entities included in the calculation of the ADI's Level 2 capital);[7]
         2.           trading in the ADI's own shares or capital instruments outside of any arrangement agreed with APRA in accordance with Prudential Standard APS 111 Capital Adequacy: Measurement of Capital (APS 111); and
         3.           the aggregate amount of dividend payments on ordinary shares that exceeds an ADI's statutory after-tax earnings after taking into account any payments on more senior capital instruments, in the ADI's financial year to which they relate.[8] For this purpose, the ADI's financial year means a period of 12 consecutive months covered by one or more sets of publicly available operating results preceding the date of the proposed payment of dividend or interest.
 3.          An ADI or authorised NOHC (as applicable) proposing a capital reduction (whether at Level 1 or Level 2) must provide APRA with a forecast showing, at the respective Levels, the projected future capital position after the proposed capital reductions. The forecast should extend for at least two years.
 4.          An ADI must satisfy APRA that the ADI's capital, at Level 1 and Level 2 as appropriate, will remain adequate for its future needs after a proposed reduction.

Notification requirements
 1.          An ADI or an authorised NOHC (as applicable) must notify APRA of any breach or prospective breach of the capital requirements contained in this Prudential Standard and inform APRA of any remedial actions taken or planned to deal with the breach.
 2.          An ADI or an authorised NOHC (as applicable) must inform APRA as soon as practicable of any:
         1.           significant departure from its ICAAP;
         2.           concerns it has about its capital adequacy (including projected losses), whether at Level 1 or Level 2, and the measures it proposes to take to address these concerns;
         3.           indication of significant adverse changes in market pricing of, or trading in, the capital instruments of the ADI or group of which it is a member (including pressures on the