Featured Product

    APRA Proposes Phased Implementation of Reporting Standard ARS 220.0

    June 08, 2021

    APRA published a response letter to submissions on the draft Reporting Standard ARS 220.0 on credit exposures and provisions. In response to the industry feedback, APRA is proposing a phased implementation of ARS 220.0. An interim and simplified reporting standard will apply while authorized deposit-taking institutions develop their solutions for delivering the full suite of credit risk data collected by ARS 220.0. The appendix to the response letter outlines the high-level timeframe for the collection of this information; this timeline is indicative and will change as APRA gains a better understanding of the complexities involved in the design of the new collection.

    APRA is seeking to incorporate, into the final full reporting standards, data that support the updated credit risk capital framework requirements included in the prudential standard APS 112 on standardized approach to credit risk and the prudential standard APS 113 on internal ratings-based approach to credit risk. As part of the industry feedback to the October 2020 consultation, some authorized deposit-taking institutions indicated that they use pre-2006 versions of Australia and New Zealand Standard Industry Classification (ANZSIC) and indicated that they would need to re-work their systems to be able to report data by industry using ANZSIC 2006. APRA seeks feedback from authorized deposit-taking institutions on the impediments to transitioning to ANZSIC 2006 in time for full ARS 220.0 implementation in early 2023.

    APRA is also consulting on the consequential changes to the authorized deposit-taking institution reporting standards and forms that will be affected by the revised Prudential Standard APS 220 on credit risk management. APRA proposes for these consequential changes to be effective from January 01, 2022. APRA is inviting comments on the proposed changes by July 06, 2021. Under the new APS 220, the term impaired will no longer be used and will be replaced with the term non-performing. At present,, eight authorized deposit-taking institution reporting standards and the reporting taxonomy of Reporting Form ARF 743.0 on housing finance use the term impaired and refer to the current APS 220 on credit quality. Consequently, APRA proposes to align these reporting standards and forms to the revised prudential standard by replacing the term impaired with the new term non-performing. The updated draft reporting standards include the following:

    • ARS 112.1 on standardized credit risk on-balance sheet assets
    • ARS 120.2 on securitization supplementary items
    • ARS 199.0 on restricted and individual authorized deposit taking institution
    • ARS 210.0 on liquidity
    • ARS 220.0 on impaired facilities
    • ARS 223.0 on residential mortgage lending
    • ARS 230.0 on commercial property
    • ARS 325.0 on international operations

     

    Related Links

    Comment Due Date: July 06, 2021

    Effective Date: January 01, 2022 (Proposed)

    Keywords: Asia Pacific, Australia, Banking, Reporting, ARS 220, APS 220, Credit Risk, Regulatory Capital, Standardized Approach, Internal Ratings Based Approach, Residential Ratings Based Approach, APRA

    Featured Experts
    Related Articles
    News

    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
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    HKMA Announces Launch of Data Repository on Sustainable Finance

    The Hong Kong Monetary Authority (HKMA) announced that the Green and Sustainable Finance (GSF) Cross-Agency Steering Group has launched the information and data repositories and outlined the progress made in advancing the development of green and sustainable finance in Hong Kong.

    June 21, 2022 WebPage Regulatory News
    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
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    NGFS Report on Integration of G-Cubed Model into NGFS Scenarios

    The Network for Greening the Financial System (NGFS) published a report that explores the feasibility of integrating the G-Cubed general equilibrium model into the NGFS suite of models.

    June 17, 2022 WebPage Regulatory News
    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
    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
    RESULTS 1 - 10 OF 8301