In the wake of the collapse of Silicon Valley Bank (SVB), Australia’s prudential regulator, the Australian Prudential Regulation Authority (APRA), has reportedly asked local banks to provide daily updates on their exposures to crypto-related companies and startups.
APRA has ordered banks to improve their reporting on crypto assets to gain more insight into the banking sector’s exposures to crypto and associated risks. The new measures are part of APRA’s increased supervision of the banking sector following the recent massive collapses in the global banking system.
This is a crisis of confidence, and credit spreads and cost of capital will continue to rise, adding to the margin pressure the banks are facing, while credit quality will continue to deteriorate.
