Regulatory Disclosure

Summerland Bank, a Division of Summerland Financial Services Limited, as an Authorised Deposit-Taking Institution (ADI), is regulated by the Australian Prudential Regulation Authority (APRA). APRA is the prudential regulator of the Australian financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. The primary role of APRA is to ensure the stability, efficiency and competition in the financial system in Australia. This is achieved through the establishment and enforcement of prudential standards in the financial services industry.

One of these key prudential standards is APS110: Capital Adequacy as:
“Capital is the cornerstone of an ADI’s financial strength. It supports an ADI’s operations by providing a buffer to absorb unanticipated losses from its activities and, in the event of problems, enables the ADI to continue to operate in a sound and viable manner while the problems are addressed or resolved………. The Board of Directors (Board) of an ADI has a duty to ensure that the ADI maintains a level and quality of capital commensurate with the type, amount and concentration of risks to which the ADI is exposed from its activities.”

As of 1 January 2023, the Bank is no longer required to prepare regulatory capital and risk disclosures in accordance with APS330: Public Disclosure as a result of the revised prudential standard issued by APRA in December 2022. For historical purposes the risk and capital disclosures for the quarters ended up to and including December 2022 are listed below.

The requirement to disclose remuneration practices under APS330 remains in place for the Bank. The remuneration disclosure is updated annually, around the same time the Annual report is released.