Featured Product

    APRA Updates Reporting Standard on Interest Rate Risk in Banking Book

    September 26, 2019

    APRA has remade ARS 117.1, the reporting standard on interest rate risk in the banking book (IRRBB), which was due to expire on October 01, 2019. The new reporting standard has updated references to the prudential standard APS 117, which sets out the requirements that an authorized deposit-taking institution with approval to use an internal model for IRRBB must meet for regulatory capital purposes. The updated ARS 117.1 will apply for reporting periods commencing on or after October 01, 2019.

    Even after the new standard becomes applicable, the reporting requirements and the group of authorized deposit-taking institutions that are required to report will remain unchanged. APRA will maintain the existing reporting requirements while it consults on revisions to the framework for IRRBB. On September 04, 2019, APRA had launched a consultation on the IRRBB framework for authorized deposit-taking institutions. This consultation ends on December 06, 2019. Additionally, APRA is expected to propose changes to the reporting and disclosure requirements and a revised prudential practice guide for IRRBB in 2020. APRA has proposed for the revised APS 117 to commence on January 01, 2022, in line with the international agreed Basel committee implementation timeline. 

    ARS 117.1 outlines the overall requirements for the provision of information to APRA in relation to the IRRBB regulatory capital of an authorized deposit-taking institution. ARS 117.1, which should be read in conjunction with APS 117, includes the reporting form ARF 117.1 and the associated instructions for an authorized deposit-taking institution reporting at Level 1 and Level 2. ARS 117.1 applies to an authorized deposit-taking institution that has approval from APRA or is seeking approval form APRA to use an internal model approach for the calculation of the IRRBB regulatory capital of an authorized deposit-taking institution. 

     

    Related Links

    Effective Date: October 01, 2019

    Keywords: Asia Pacific, Australia, Banking, IRRBB, ARS 117.1, APS 117, Interest Rate Risk, Internal Models, Regulatory Capital, Reporting, APRA

    Featured Experts
    Related Articles
    News

    PRA and FPC Finalize Changes to Leverage Ratio Framework in UK

    The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA

    October 08, 2021 WebPage Regulatory News
    News

    CFPB Proposes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.

    October 08, 2021 WebPage Regulatory News
    News

    PRA Decides to Maintain O-SII Buffers for Another Year

    The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.

    October 08, 2021 WebPage Regulatory News
    News

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.

    October 07, 2021 WebPage Regulatory News
    News

    APRA Updates Loan Serviceability Expectations for Home Lending

    In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

    October 06, 2021 WebPage Regulatory News
    News

    CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.

    October 06, 2021 WebPage Regulatory News
    News

    EBA and EIOPA Set Out Work Priorities for 2022

    The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.

    October 05, 2021 WebPage Regulatory News
    News

    MFSA Issues Reporting Updates and Guidance for Banks

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.

    October 05, 2021 WebPage Regulatory News
    News

    EC Publishes Decision on List of Equivalent Third Countries Under CRR

    The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).

    October 04, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write-Down and Conversion Powers

    EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.

    October 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7552