Overview
APS 220 Credit Risk Management is issued by the Australian Prudential Regulation Authority (APRA) under section 11AF of the Banking Act 1959. It revokes and replaces the previous 2022 version, taking effect from January 1, 2023. The standard applies to all ADIs, excluding purchased payment facility providers, and covers areas such as credit risk appetite, assessment and approval criteria, lifecycle management, problem exposure identification, and compliance with the Australian Accounting Standards. The guidance ensures institutions implement prudent risk management measures proportional to their size and complexity. Foreign ADIs are subject to specific obligations within their Australian businesses.