Featured Product

    APRA Consults on Reporting Standards Under Capital Framework for Banks

    April 07, 2022

    The Australian Prudential Regulation Authority (APRA) is seeking comments, until June 07, 2022, on the proposed reporting standards under the updated capital framework for banks.

    The APRA consultation includes the interim reporting standards in tandem with the updated capital adequacy and credit risk capital requirements for authorized deposit-taking institutions. APRA published the draft interim reporting standards that will accompany the prudential standards on capital adequacy (APS 110), standardized approach to credit risk (APS 112), and internal ratings-based approach to credit risk (APS 113): ARS 110.0 on capital adequacy, ARS 112.0 on standardized approach to credit risk, and ARS 113.0 on internal ratings-based approach to credit risk. ARS 110.0 maintains the structure of the current reporting form, with updates that align it with the new prudential standards. These updates include more detailed information on subsidiaries and the addition of data items related to leverage ratios of authorized deposit-taking institutions. ARS 112.0 and ARS 113.0 will use a table-based format made possible by the implementation of APRA Connect, moving away from the current form-based collections. The new standards will replace the below reporting standards and their associated reporting forms, effective for the reporting period ending March 31, 2023:

    • ARS 112.1 on standardized credit risk—on-balance sheet assets
    • ARS 112.2 on standardized credit risk—off-balance sheet exposures
    • ARS 113.0 on foundation internal-ratings based approach to credit risk
    • ARS 113.1 on advanced internal-ratings based approach to credit risk
    • ARS 113.2 on internal ratings-based approach to credit risk—specialized lending supervisory slotting
    • ARS 113.3 on internal ratings-based approach to credit risk—retail
    • ARS 113.4 on internal ratings-based approach to credit risk—other assets, claims, and exposures

    APRA has identified three other reporting standards that require minor updates: ARS 180.0 on counterparty credit risk, ARS 221.0 on large exposures, and ARS 223.0 on residential mortgage lending. No changes are expected to the data submitted under these three reporting standards. APRA intends to use APRA Connect to collect submissions for ARS 110.0, ARS 112.0, ARS 113.0, and ARS 115.0 data. Versions of the draft collections for ARS 110.0, ARS 112.0, and ARS 113.0 will be available in a test environment before the end of this consultation. APRA also clarified expectations for data to be submitted for September 2022 and December 2022 quarter-ends in parallel with the existing reporting. For the September and December submissions, institutions are expected to explain when the submission does not comply with the prudential requirements, such as the use of unapproved models and proxies. APRA is committed to meeting the January 01, 2023 implementation date and proposes for the interim reporting standards and consequential/other updates to be effective for the reporting period ending March 31, 2023.

     

    Related Links

     

    Keywords: Asia Pacific, Australia, Banking, Basel, Regulatory Capital, Credit Risk, Standardized Approach, IRB Approach, ARS 110, ARS 112, ARS 113, Large Exposures, Lending, APRA, Headline

    Featured Experts
    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206