AU ADI — Non-SFI (three-tier, proposed)¶
| Tier ID | AU-NonSFI-3T |
| Jurisdiction | AU |
| Status | Proposed — not yet operative |
| Asset threshold | ≤ AUD 30 billion and not APRA-designated (proposed three-tier framework) |
| Effective from (est.) | 2027-12-31 |
| Capital methodology | Standardised |
| Liquidity framework | MLH |
| OBR applicable | No |
| Disclosure tier | Simplified |
| D-SIB eligible | No |
Proposed standard
This tier is defined under a proposed regulatory framework that is not yet operative. The platform must demonstrate compliance against both the current operative tier and this proposed tier simultaneously, as existing institutions are planning for the forthcoming standard now.
Notes
Proposed base tier under APRA's three-tier reform. Threshold raised from AUD 20 billion to AUD 30 billion. Captures more entities than the current AU-NonSFI (some current SFIs between $20-30bn may step down here). APRA proposes a further simplified MLH framework for non-SFIs under the three-tier reform. Simplified capital ratio calculation under APS 110 Attachment A remains available. Additional implementation time granted to non-SFIs for new or materially revised requirements. This is the most likely long-term AU customer configuration for this platform.
Profile¶
The Non-SFI tier under APRA's proposed three-tier framework is the base category for the majority of Australian ADIs. It is functionally similar to the current AU-NonSFI but with a higher threshold (AUD 30 billion versus AUD 20 billion currently), meaning some current SFIs may step down to this tier following APRA's individual reviews.
Status: Proposed — not yet operative. This tier co-exists with AU-NonSFI (current operative framework) in the platform's obligation model.
Key change from AU-NonSFI¶
APRA proposes a further simplified MLH framework specifically for non-SFIs under the three-tier reform. The details of this simplification are to be consulted on as part of the reform finalisation, but the intent is to reduce the burden of the liquidity standard for smaller institutions without compromising depositor protection.
Additionally, non-SFIs receive additional implementation time for new or materially revised prudential requirements, recognising their more limited capacity to absorb regulatory change quickly compared to larger institutions.
Obligations¶
AU-NonSFI-3T carries the same general obligation set as AU-NonSFI:
- Standardised capital (APS 112); no IRB
- MLH ≥ 9% of liabilities (possibly simplified further under reform)
- No mandatory APS 330 Pillar 3 disclosure
- Simplified CPS 511 remuneration obligations
- APS 220 and APS 510 governance with proportionate expectations
- Full AML/CTF reporting entity obligations (no AUSTRAC tier)
Expanded set vs current AU-NonSFI¶
Some current SFIs between AUD 20 billion and AUD 30 billion will join this tier following APRA's individual reviews. This means AU-NonSFI-3T may include some entities that currently have more sophisticated internal systems. The platform's non-SFI configuration should be able to accommodate this range.
Platform relevance¶
The long-term primary AU customer configuration for this platform. Credit unions, building societies, and smaller mutual banks at any asset level below AUD 30 billion will fall here once the reform is operative. The MLH simplified liquidity calculation mode is the key platform requirement (gap shared with NZ-G3 CFCR need).
Tier-specific regulations¶
No regulations are tagged as exclusive to this tier. All regulations applicable to this jurisdiction apply under their default scope.
Tier-specific policies¶
Policies that apply exclusively to this tier (not all tiers in the jurisdiction):
| Code | Title | Status |
|---|---|---|
| CLQ-004 | Interest Rate Risk in the Banking Book (IRRBB) Policy | Draft |
Compiled 2026-05-22 from source/entities/entity-tiers/AU-NonSFI-3T.yaml