Australian regulators have reportedly instructed banks to improve reporting on crypto assets and provide daily updates.
Australian regulators have reportedly asked local banks to report cryptocurrency transactions amid the ongoing contagion from the failure of Silicon Valley Bank (SVB).
The Australian Prudential Regulation Authority (APRA) has begun requiring banks to report their exposure to startups and cryptocurrency-related businesses, the Australian Financial Review reported on March 21.
Regulators have ordered banks to improve reporting on crypto assets and update APRA daily, the Financial Review notes, citing three people familiar with the matter. The agency aims to gain more information and insight into banks’ exposure to cryptocurrencies and the risks associated with them, the sources said.
The new measures appear to be part of APRA’s increased oversight of the banking sector following the recent major collapse of the global banking system. On March 19, UBS Group agreed to buy struggling rival Credit Suisse for $3.2 billion after it filed for bankruptcy over the weekend. The acquisition made him one of the banking industry’s recent failures following the collapse of SVB and Silvergate.
In a note to clients, Barenjoey analyst Jonathan Mott reportedly said conditions for Australian banks were “stable,” but confidence quickly erupted, putting pressure on banks’ margins. I warned you that it could happen.
“Our channel review shows that no deposits have been withdrawn from smaller institutions of any size, indicating strong capital and liquidity buffers,” Mott said. added as
“But this is a crisis of confidence and credit spreads, and the cost of capital will continue to rise. At the very least, margin pressure on banks will increase while credit quality continues to decline.”
The news comes shortly after the Australian Bankers Association launched a cost of living survey to explore the impact of his COVID-19 pandemic and geopolitical tensions on Australians. The survey followed an analysis of rising inflation that suggests more than 186 banks in the US are at risk of similar closures if depositors decide to withdraw all their funds.
