Featured Product

    APRA to Implement Interim Reporting Standard on Credit Quality by 2022

    August 30, 2021

    The Australian Prudential Regulation Authority (APRA) finalized certain revisions to the credit risk management framework for authorized deposit-taking institutions. APRA has published a response to submissions on the interim version of ARS 220.0, the reporting standard on credit quality, in addition to the consequential changes to reporting standards affected by the implementation of APS 220, the reporting standard on credit risk management. In this context, the finalized reporting standards are ARS 220.0, ARS 743.0 on ABS/RBA Housing Finance, and ARS 199.0 for restricted authorized deposit-taking institutions. APRA will proceed with implementation of the interim ARS 220.0 commencing January 01, 2022. First submissions for the new reporting standard will be due on May 05, 2022.

    APRA considers that the implementation of interim ARS 220.0 is required to ensure alignment of reporting with the revised APS 220 from January 2022, maintaining its value for supervision, publication, and use by other agencies. In addition, implementing the interim ARS 220.0 creates a smoother, staged transition to APS 220 and a more accurate base to evaluate the implementation of ARS 220.0 and APRA’s new capital framework. Under the new APS 220, the term impaired will be replaced with the term non-performing. During consultation, three submissions from authorized deposit-taking institutions expressed a preference for additional lead time to develop and implement the full ARS 220.0. Thus, APRA will continue to consult with institutions during development of the full ARS 220.0 data cube and will consider feedback on the indicative implementation dates. In addition, APRA has amended ARS 743.0 to update two references to impaired exposures and replace them with non-performing in response to consultation feedback. These changes, like the other consequential amendments, will apply from January 01, 2022. Finally, in ARS 199.0, APRA replaced references to the word "impaired" with "non-performing" for the reporting form ARF 199.0 and modified instructions for this reporting form.


    Related Links

    Keywords: Asia Pacific, Australia, Banking, Credit Risk, ARS 220, APS 220, Reporting, Credit Exposures, NPLs, APRA

    Featured Experts
    Related Articles

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267