APRA Proposes to Increase Transparency of Banking Data
APRA announced that it is resuming consultation on the confidentiality of data submitted to APRA by the authorized deposit-taking institutions. To this end, APRA has published a consultation letter proposing a list of key data items to be determined non-confidential and is inviting stakeholder feedback on the consultation by November 20, 2020. APRA intends to publish entity-level data in 2021, with the exception of data on certificates of deposit.
Earlier, APRA had published, on December 05, 2019, a letter advising that it was proposing to determine data sources for its authorized deposit-taking institution quarterly publications to be non-confidential and to provide an opportunity to the institutions to make submissions on these proposals. However, this consultation had been paused in response to the challenges posed by the COVID-19 outbreak. The December proposal outlined plans to determine that certain data collected for quarterly authorized deposit-taking institution publications should be considered non-confidential, thus allowing it to be published. A common theme in the industry submissions, by authorized deposit-taking institutions, to the December consultation was to break up and slow down the proposed publication of authorized deposit-taking institution data into more manageable stages. In response to this, APRA is now re-consulting on a much shorter list of key authorized deposit-taking institution metrics, sourced almost entirely from the Quarterly Authorized Deposit-taking Institution Performance Statistics (QADIP). The key authorized deposit-taking institution metrics subject to this consultation relate to capital adequacy, liquidity, asset quality, financial statements, and financial performance.
APRA also intends to use this publication as a foundation to reduce the burden of disclosure requirements for smaller authorized deposit-taking institutions. As has been consulted on previously, APRA is proposing to reduce the Pillar 3 disclosure burden for smaller institutions. Publication of these key metrics by APRA would be an enabler of this initiative. This proposal, which is outlined in Attachment 1 to the APRA letter, is a major step in improving the transparency of the risk profiles of authorized deposit-taking institutions while Attachment 2 to the letter contains a table of key authorized deposit-taking institution metrics. Publication of these data will assist in providing the public with a centralized and consistent data source on individual institutions.
Related Links
Comment Due Date: November 20, 2020
Keywords: Asia Pacific, Australia, Banking, Securities, Reporting, Disclosures, QADIP, EFS, Statistics, Regulatory Capital, Liquidity, 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
PRA Proposes to Amend SS11/13 on Internal Ratings-Based ApproachesRelated Articles
ESAs Publish Reporting Templates for Financial Conglomerates
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA Publishes Report on Asset Encumbrance of Banks in EU
EBA published the annual report on asset encumbrance of banks in EU.
US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA Proposes Guidelines for Establishing Intermediate Parent Entities
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA Issues Erratum for Technical Package on Reporting Framework 3.0
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
ECB Letter Sets Out Strategies to Address Issue of Nonperforming Loans
ECB published a letter from Andrea Enria, the Chair of the Supervisory Board of ECB, answering questions raised by the President of the Bundestag (the German federal parliament) on how ECB assesses the financial stability of the euro area in the context of the significant level of nonperforming loans.
