The Australian Prudential Regulation Authority plans to update its prudential standard on credit risk management requirements for banks.

The regulator proposed broadening the credit risk requirements to include credit standards and the ongoing monitoring and management of an authorized deposit-taking institution's credit portfolio in more detail. The revised standard also provides "a more consistent classification" of credit exposures, by aligning recent accounting standard changes on loan provisioning requirements.

APRA said it decided to update the standard, which was last substantially updated in 2006, as credit risk practices have evolved and there are more sophisticated analytical techniques.

The proposed reforms are due to be implemented from July 1, 2020. The revised reporting standards will be released for consultation later this year.