General Information & Client Services
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
August 03, 2017

APRA published a discussion paper that sets out its response to the submissions on APRA’s September 2016 discussion paper on counterparty credit risk CCR for authorized deposit-taking institutions and a number of revised proposals for further consultation. It also revised drafts of Prudential Standard APS 112 Capital Adequacy: Standardized Approach to Credit Risk (APS 112) and Prudential Standard APS 180 Capital Adequacy: Counterparty Credit Risk (APS 180), which incorporate changes to APRA’s proposed new CCR requirements for authorized deposit-taking institutions. With regard to reporting-related revisions, APRA released three draft reporting standards (ARS 112.2, ARS 118.1, and ARS 180.0.) that set out proposed revisions to the corresponding reporting requirements as well as proposed reporting requirements on margining for non-centrally cleared derivatives. APRA has also released a letter to authorized deposit-taking institutions regarding minor amendments to APS 112, which APRA consulted on in September 2016. APRA invites written submissions on its proposals by September 29, 2017.

APRA proposed finalizing these amendments at the same time as the CCR requirements. Collectively, the package sets out APRA’s proposed implementation of the Basel Committee on Banking Supervision’s standardized approach for measuring counterparty credit risk exposures (SA-CCR) and capital requirements for bank exposures to central counterparties. APRA proposes that an authorized deposit-taking institution with approval to use an internal ratings-based approach to credit risk must use the SA-CCR to measure its CCR exposures, while all other authorized deposit-taking institutions may continue to use the Current Exposure Method, subject to appropriate recalibration. The discussion paper also provides clarification on a range of other matters raised in earlier submissions. The new prudential and reporting requirements for CCR will take effect no earlier than January 01, 2019.


Related Links

CCR Revisions and Related Documents

Proposed Minor Amendments to APS 112


Comment Due Date: September 29, 2017

Effective Date: January 01, 2019

Keywords: Asia Pacific, Australia, Banking, CCR, SA CCR, Capital Adequacy, Credit Risk, APRA

Related Insights

IAIS Publishes Drafts of Revised ICP 8, ICP 15, ICP 16, and ICP 20

IAIS published the drafts of revised Insurance Core Principles on Public Disclosure (ICP 20), Investments (ICP 15), Enterprise Risk Management for Solvency Purposes (ICP 16), and Risk Management and Internal Controls (ICP 8), along with a revised draft of the glossary on enterprise risk management (ERM).

November 14, 2018 WebPage Regulatory News

MAS Amends Notice 637 on Capital Adequacy Requirements in Singapore

MAS published the final, revised Notice 637 on the risk-based capital adequacy requirements in Singapore.

November 13, 2018 WebPage Regulatory News

ESMA Updates Q&A on Implementation of CSD Regulation and MAR

ESMA updated questions and answers (Q&A) documents on the implementation of the Central Securities Depository (CSD) Regulation and Market Abuse Regulation (MAR).

November 12, 2018 WebPage Regulatory News

FSB Finalizes and Publishes the Cyber Lexicon

FSB published a cyber lexicon, following the public consultation earlier this year.

November 12, 2018 WebPage Regulatory News

SRB Updates Liability Data Reporting Template for 2019

SRB published version 2.7.1 of the Liability Data Reporting (LDR) Template.

November 12, 2018 WebPage Regulatory News

ECB to Conduct Comprehensive Assessment of Six Bulgarian Banks

ECB will undertake a comprehensive assessment of six Bulgarian banks. The exercise, comprising an asset quality review and a stress test, follows Bulgaria’s submission of a request to establish close cooperation with ECB on July 18, 2018.

November 12, 2018 WebPage Regulatory News

IMF Publishes Reports on the 2018 Article IV Consultation with Chile

IMF published its staff report and selected issues report under the 2018 Article IV consultation with Chile.

November 09, 2018 WebPage Regulatory News

PRA Issues PS27/18 on Implementing the Extension of SM&CR to Insurers

PRA published the policy statement PS27/18, which provides feedback to responses to the consultation paper CP20/18, on implementing the extension of the Senior Managers and Certification Regime (SM&CR) to insurers (Part 2).

November 09, 2018 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for November 2018

EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.

November 09, 2018 WebPage Regulatory News

FED Finalizes the Large Financial Institution Rating System

FED finalized the new supervisory rating system for Large Financial Institutions (LFIs), to better align with the current supervisory programs and practices for these firms.

November 09, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2204