AU ADI — Significant Financial Institution¶


Tier ID	`AU-SFI`
Jurisdiction	AU
Status	Current
Asset threshold	> AUD 20 billion, or APRA-designated
Capital methodology	IRB-eligible
Liquidity framework	LCR-NSFR
OBR applicable	No
Disclosure tier	Full
D-SIB eligible	Yes

Notes

Current APRA SFI definition under APS 001. 14 current SFIs including ANZ, CBA, NAB, Westpac, Macquarie Bank, Bank of Queensland, Bendigo and Adelaide Bank, ING Bank Australia, HSBC Australia, Heritage and People's Choice (mutual), Newcastle Greater Mutual, Rabobank Australia, AMP Bank, Norfina (Suncorp Bank). Full APS 330 Pillar 3 disclosure mandatory. Full LCR and NSFR (Category 1 ADI). IRB approach available to APRA-approved entities — currently only the four majors and Macquarie. D-SIBs (ANZ, CBA, NAB, Westpac) carry an additional 1.0% CET1 D-SIB buffer on top of the Capital Conservation Buffer. This tier will be superseded by AU-SFI-3T when the APRA three-tier reform is finalised (expected end 2026).

Profile¶

The Significant Financial Institution (SFI) is APRA's current primary designation for large ADIs under APS 001. An ADI is an SFI if its total assets exceed AUD 20 billion, or if APRA designates it as an SFI based on complexity, group structure, or systemic risk considerations regardless of asset size. There are currently 14 SFIs.

SFI status activates a range of enhanced prudential requirements across capital, liquidity, governance, and public disclosure standards. This tier is operative now and will transition to the proposed AU-MSFI / AU-SFI-3T structure once the APRA three-tier reform is finalised (expected end 2026).

Capital¶

All ADIs must meet minimum capital ratios: CET1 4.5%, Tier 1 6.0%, Total Capital 8.0%, plus the Capital Conservation Buffer (CCB) of 2.5% CET1. The APRA-set Countercyclical Capital Buffer (CCyB) applies to Australian credit exposures.

Four major banks (ANZ, CBA, NAB, Westpac) designated as D-SIBs carry an additional 1.0% CET1 D-SIB buffer on top of the CCB, bringing their effective CET1 floor to 8.0% (4.5% + 2.5% CCB + 1.0% D-SIB buffer) before the CCyB.

IRB credit risk approach (APS 113) is available to APRA-approved entities — currently only the four D-SIBs and Macquarie Bank hold APRA IRB approval. All other SFIs use the standardised approach (APS 112).

AT1 capital is retained in the Australian framework (unlike NZ, which removed AT1). Tier 2 and AT1 count towards Total Capital and Tier 1 ratios respectively under APS 111.

APRA is finalising Loss Absorbing Capacity (LAC/TLAC) requirements for D-SIBs from January 2026.

Liquidity¶

SFIs are APRA Category 1 ADIs and must comply with the full LCR (≥ 100%, 30-day stress horizon) and NSFR (≥ 100%, 1-year structural funding ratio). Note: there is no AU equivalent of the NZ MFCR.

Public disclosure (APS 330)¶

Full APS 330 Pillar 3 disclosure is mandatory for locally incorporated SFIs. This includes comprehensive quantitative and qualitative disclosures on capital adequacy, credit risk, market risk, operational risk, liquidity, and leverage. Full BCBS remuneration disclosures apply for SFIs with complex remuneration arrangements.

Governance¶

Independent qualified third-party board assessment required at least every three years. Active engagement with APRA on all board appointments. Full CPS 511 remuneration requirements including performance adjustment (malus and clawback) provisions for Material Risk Takers.

Platform relevance¶

SFI-tier clients require the full module set: IRB-capable capital module (MOD-033), full LCR/NSFR liquidity (MOD-032), APS 330 Pillar 3 disclosure, and full governance module configuration. This is a more demanding configuration than the likely initial customer tier (AU-NonSFI or NZ-G3).

Tier-specific regulations¶

Regulations that apply exclusively or in a materially different way to this tier:

Reg ID	Title	Status
au-aps-330	APS 330 Public Disclosure	live

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

Tier-specific modules¶

Modules deployed exclusively for this tier:

Module	Title	Status
MOD-032	LCR / NSFR calculator	Deployed

Compiled 2026-05-22 from source/entities/entity-tiers/AU-SFI.yaml