The prudential regulator has released a discussion paper proposing amendments to the prudential reporting standards as part of an international response to the global financial crisis.

The Australian Prudential Regulation Authority (APRA) paper follows its release in December of a package of proposed changes to prudential standards and practice guides for authorised deposit-taking institutions.

Those changes reflect enhancements to the Basel II Framework adopted by the international Basel Committee on Banking Supervision in July of last year.

The enhancements are intended to strengthen regulatory capital, risk management and supervision requirements.

The changes affect prudential standards APS 111 Capital Adequacy: Measurement of Capital, APS 116 Capital Adequacy: Market Risk and APS 120: Securitisation.

Among the changes outlined in the discussion paper is a requirement for stress tests to be undertaken in regard to risks associated with credit spreads.

Submissions to the paper close on June 1, with final reporting standards and reporting forms due by the middle of the year.

APRA Executive GM Diversified Institutions Division Wayne Byres said in a speech last month it was “pointless and unhelpful to try to stand against the tide of international reform”.

The amended prudential standards are due to be implemented from January 1.