APRA Finalizes Reporting Standard for Operational Risk Requirements
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia. ARS 115.0 includes Reporting Form ARF 115.0 and the associated instructions and it applies for reporting periods ending on or after January 01, 2023. As announced in March 2020, APRA has moved the implementation date of APS 115 for all authorized deposit-taking institutions to January 01, 2023, to align with the Basel Committee’s decision to delay the international start date of the Basel III standards. Institutions that have the APRA approval to use an advanced measurement approach for operational risk under APS 115 as at December 31, 2021 may adopt the standardized approach from January 01, 2022, or otherwise continue to comply with existing reporting until January 01, 2023. Later in 2021, APRA expects to release the frequently asked questions (FAQs) on ARS 115.0.
In response to the feedback received during the consultation process, APRA has added an item requiring authorized deposit taking institutions to report on the time period covered by the audited data used to complete ARS 115.0. Institutions can submit ARS 115.0 using the most recent audited data available if current period audited financial data are not available. APRA is also increasing transparency of the authorized deposit taking institutions data it collects, consistent with wider government open-data policies. APRA will determine the data submitted for ARS 115.0 to be non-confidential 35 days after it is given to APRA. This lag has been introduced to ensure that the financial disclosures of an authorized deposit taking institution are published prior to any publication of this data by APRA.
APRA uses the information collected under this reporting standard for the purpose of prudential supervision, including assessing compliance with the prudential standard APS 115. This information may also be used by the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS). This reporting standard applies to all authorized deposit-taking institutions, except foreign authorized deposit-taking institutions, purchased payment facility providers (PPF providers), and the authorized deposit-taking institutions that satisfy the eligibility criteria for the simplified framework. An authorized deposit-taking institution to which ARS 115.0 applies must provide the required information for each quarter based on the financial year of the authorized deposit-taking institution.
Related Links
Keywords: Asia Pacific, Australia, Banking, ARS 115, Reporting, Operational Risk, Regulatory Capital, Basel, APS 115, ARF 115, APRA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
HKMA Extends Principal Payment Holiday Scheme by Six MonthsRelated Articles
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
SEC Extends Comment Period on Climate Risk Disclosures
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
APRA Reduces Committed Liquidity Facility, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.
EBA Updates Standards for 2023 Benchmarking of Internal Approaches
The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.
EIOPA Responds to Stakeholder Views on Blockchain in Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.
