Treasury has released a draft of the terms of reference for the Australian Prudential Regulation Authority capability review, seeking public comment.The review will be led by chair Graeme Samuel, Diane Smith-Gander and Grant Spencer. It has been asked to provide an assessment of APRA's ability to respond to an environment of growing complexity and emerging risks in the areas it regulates.The review panel will make recommendations to enhance APRA's capability, "having regard to the changing operating environment and any relevant organisational initiatives which are already underway."The draft terms of reference say the review panel should evaluate the extent to which the following factors support APRA in delivering its mandate:•    well-considered and clear strategy that takes into account the future operating environment, effectively cascaded through the organisation;•    decision-making that balances financial safety and stability with considerations of efficiency, competition, contestability and competitive neutrality;•    culture that supports supervisory and enforcement actions in support of strategic objectives;•    robust internal governance arrangements, supported by fit-for-purpose internal reporting, performance monitoring and audit and assurance activities;•    appropriate resource allocation that is responsive to emerging issues, and efficient utilisation;•    staff with necessary expertise (industry, technical and data analytics) supported by appropriate tools;•    sound process and outcomes realised across APRA's core supervision, policy and resolution functions;•    appropriate engagement with Australian financial sector regulators, including suitable information sharing arrangements; and•    fit-for-purpose statutory powers.The review panel is to report to the government by the end of June. The deadline for submissions on the terms of reference is April 10.