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The Australian Prudential Regulation Authority’s (APRA) proposed financial claims scheme may throw extra overhead costs on the nation’s deposit takers.
Under the proposed scheme, banks would have to produce a compilation annually of its deposit data aggregated by account holders, so the information would reflect multiple accounts on deposit by an individual, not just the single accounts that are active.
According to a report in The Australian Financial Review, APRA acknowledged the fact that deposit takers would be struck with extra costs, but said its intention was to keep costs as minimal as possible.
Banks are being encouraged to review APRA’s discussion paper (released on Wednesday) and draft any concerns they may have with the regulations.
A spokesperson for NAB welcomed the opportunity of the consultation period and said the March 12 deadline for submissions would give the bank enough time to “thoroughly assess impacts and consider our response.”
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