Featured Product

    APRA Publishes Final Standards on Counterparty Credit Risk for Banks

    April 23, 2018

    APRA published the final prudential and reporting standards related to counterparty credit risk for authorized deposit-taking institutions. These standards include APS 112, APS 180, ARS 112.2, ARS 118.1, and ARS 180.0. The standards will commence on July 01, 2019. APRA also released a response to the submissions received on the discussion paper on counterparty credit risk for authorized deposit-taking institutions.

    The issued prudential standards are as follows:

    • Prudential Standard APS 112 Capital Adequacy: Standardized Approach to Credit Risk
    • Prudential Standard APS 180 Capital Adequacy: Counterparty Credit Risk
    • Reporting Standard ARS 112.2 Standardized Credit Risk: Off-balance Sheet Exposures (including Reporting Form ARF 112.2A)
    • Reporting Standard ARS 118.1 Other Off-balance Sheet Exposures (including ARF 118.1)
    • Reporting Standard ARS 180.0 Counterparty Credit Risk (including Reporting Forms ARF 180.1, ARF 180.2, and ARF 226)

    APRA had launched the second consultation, in August 2017, regarding a series of revisions to the standardized approach for measuring counterparty credit risk exposures (SA-CCR) for authorized deposit-taking institutions. The first consultation was launched in 2016. APRA had received seven submissions on the 2017 consultation paper. Submissions did not raise issues with APRA’s proposed adoption of the adjusted current exposure method (CEM); therefore, APRA will adopt this simplified approach for the authorized deposit-taking institutions with immaterial counterparty credit risk, which will be the approach for the majority of authorized deposit-taking institutions. Otherwise, the issues raised were of a general nature, with some covering technical aspects of the proposals. Attachment A to the response letter covers the material issues raised in those submissions and some matters of clarification. Attachment B includes the number of other changes to the final standards made by APRA, including incorporating additional material from frequently asked questions published by BCBS.


    Related Links

    Effective Date: July 01, 2019

    Keywords: Asia Pacific, Australia, Banking, CCR, SA-CCR, Capital Adequacy, Reporting, ARF 226, ARF 180, ARF 112.2A, ARF 118.1, APRA

    Related Articles

    PRA Publishes Q&A on Property Valuation Requirements Under CRR

    PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.

    May 29, 2020 WebPage Regulatory News
    News

    IOSCO Consults on Outsourcing Principles for Operational Resilience

    IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.

    May 28, 2020 WebPage Regulatory News
    News

    MAS Consortium to Develop AI Fairness Metrics for Credit Scoring

    MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.

    May 28, 2020 WebPage Regulatory News

    BoE Updates Definitions for BTL Data Collection

    BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.

    May 28, 2020 WebPage Regulatory News
    News

    FSI Examines Financial Stability Implications of Payment Deferrals

    FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.

    May 28, 2020 WebPage Regulatory News
    News

    PRA Finalizes Policy on Prudent Person Principle Under Solvency II

    PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.

    May 27, 2020 WebPage Regulatory News
    News

    EBA on Extending Large Exposure Limits for French Systemic Banks

    EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).

    May 27, 2020 WebPage Regulatory News
    News

    ECB Highlights NPL Resolution as Key Policy Issue in Post-COVID Europe

    As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.

    May 27, 2020 WebPage Regulatory News
    News

    RBNZ Publishes Financial Stability Report for May 2020

    RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.

    May 27, 2020 WebPage Regulatory News
    News

    ECB Updates Guidance on Reporting of Securities Holdings Statistics

    ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).

    May 26, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5231