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

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582