APRA is raising the bar for new banks to prevent future failures

The Australian Prudential Regulation Authority (APRA) has issued stricter standards for prospective neobanks that apply for banking licenses following Xinja’s collapse last December, per Business Insider Australia.

From here on out, applicants will need to offer an “income-generating asset,” like loans, in addition to a depository product. They also will have to establish contingency plans for financial stress, including exit plans for winding down.

Read more: Business Insider Australia