Amid the turbulence in the American banking sector, the Australian Prudential Regulation Authority (APRA) has announced plans to mandate daily reporting for domestic banks regarding their investments in startups and cryptocurrencies.
As reported by the Australian Financial Review, APRA has issued a notice to local banks, directing them to enhance their reporting mechanisms for crypto-related investments and to submit daily updates on these activities.
This move to strengthen oversight of Australian banks comes in response to the recent failures of several US banks and the liquidity crisis at Credit Suisse, prompting APRA to take proactive measures.
Financial analyst Jonathan Mott noted that while the Australian banking industry is currently stable, this could change abruptly.
However, there are no indications of a rush by locals to withdraw deposits from their banks. In a separate development, the US Federal Deposit Insurance Corporation (FDIC) has sold bankrupt Signature Bank, but the FDIC still retains control of the crypto-focused division.