As an Authorised Deposit-Taking Institution (ADI), Community First Credit Union Limited is regulated by the Australian Prudential Regulation Authority (APRA). The primary role of APRA in relation to ADI's is to ensure the stability of the financial industry, principally managed through the strict regulation of capital adequacy requirements.
Capital is the cornerstone of an ADI's financial strength. It supports an ADI's operations by providing a buffer to absorb unanticipated losses from its activities and, in the event of problems, enables the ADI to continue to operate in a sound and viable manner while the problems are being addressed or resolved. New disclosure requirements commencing from the June 2013 quarter require information about the credit union's capital to be displayed on the website. This disclosure will show Community First's assets and their appropriate risk weight under the international capital framework standard (Basel III). The minimum Capital Adequacy Ratio required under APS is 8%.