Featured Product

    APRA Publishes Final Standards on Counterparty Credit Risk for Banks

    April 23, 2018

    APRA published the final prudential and reporting standards related to counterparty credit risk for authorized deposit-taking institutions. These standards include APS 112, APS 180, ARS 112.2, ARS 118.1, and ARS 180.0. The standards will commence on July 01, 2019. APRA also released a response to the submissions received on the discussion paper on counterparty credit risk for authorized deposit-taking institutions.

    The issued prudential standards are as follows:

    • Prudential Standard APS 112 Capital Adequacy: Standardized Approach to Credit Risk
    • Prudential Standard APS 180 Capital Adequacy: Counterparty Credit Risk
    • Reporting Standard ARS 112.2 Standardized Credit Risk: Off-balance Sheet Exposures (including Reporting Form ARF 112.2A)
    • Reporting Standard ARS 118.1 Other Off-balance Sheet Exposures (including ARF 118.1)
    • Reporting Standard ARS 180.0 Counterparty Credit Risk (including Reporting Forms ARF 180.1, ARF 180.2, and ARF 226)

    APRA had launched the second consultation, in August 2017, regarding a series of revisions to the standardized approach for measuring counterparty credit risk exposures (SA-CCR) for authorized deposit-taking institutions. The first consultation was launched in 2016. APRA had received seven submissions on the 2017 consultation paper. Submissions did not raise issues with APRA’s proposed adoption of the adjusted current exposure method (CEM); therefore, APRA will adopt this simplified approach for the authorized deposit-taking institutions with immaterial counterparty credit risk, which will be the approach for the majority of authorized deposit-taking institutions. Otherwise, the issues raised were of a general nature, with some covering technical aspects of the proposals. Attachment A to the response letter covers the material issues raised in those submissions and some matters of clarification. Attachment B includes the number of other changes to the final standards made by APRA, including incorporating additional material from frequently asked questions published by BCBS.


    Related Links

    Effective Date: July 01, 2019

    Keywords: Asia Pacific, Australia, Banking, CCR, SA-CCR, Capital Adequacy, Reporting, ARF 226, ARF 180, ARF 112.2A, ARF 118.1, APRA

    Related Articles
    News

    APRA Publishes Proposal to Increase Transparency of Banking Data

    APRA proposed to substantially increase the volume and breadth of data it makes publicly available on authorized deposit-taking institutions, including banks, credit unions, and building societies.

    December 05, 2019 WebPage Regulatory News
    News

    EC Amends Rule on Mapping of External Credit Assessment Institutions

    EC published the implementing regulation (EU) 2019/2028, which amends Regulation 2016/1799, regarding the mapping tables specifying correspondence between the credit risk assessments of external credit assessment institutions (ECAIs) and the credit quality steps set out in the Capital Requirements Regulation.

    December 04, 2019 WebPage Regulatory News
    News

    EBA Issues Second Part of Advice on Implementation of Basel III in EU

    EBA published the second part of its advice on the implementation of Basel III in EU, which complements the report published on August 05, 2019.

    December 04, 2019 WebPage Regulatory News
    News

    EU Approves European Council Proposal on CCP Recovery and Resolution

    EU ambassadors approved the position of European Council on a proposed framework for clearing houses and their authorities to prepare for and deal with financial difficulties.

    December 04, 2019 WebPage Regulatory News
    News

    EIOPA Consults on Approach for Regulating Key Aspects of PEPP

    EIOPA launched a consultation on the proposed approaches and considerations for its technical advice and its implementing and regulatory technical standards, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation.

    December 02, 2019 WebPage Regulatory News
    News

    ESMA Issues Guidance for Registration of Securitization Repositories

    ESMA published a guidance note on the process for registering securitization repositories under the Securitization Regulation.

    December 02, 2019 WebPage Regulatory News
    News

    European Council Appoints New Commission With Effect from December 01

    European Council appointed the new Commission for the period from December 01, 2019 to October 31, 2024.

    December 02, 2019 WebPage Regulatory News
    News

    BoE Governor Appointed as UN Envoy for Climate Action and Finance

    BoE Governor Mark Carney has been appointed as the United Nations (UN) Special Envoy for Climate Action and Finance.

    December 01, 2019 WebPage Regulatory News
    News

    PRA Publishes Annual List of G-SIIs and O-SIIs

    PRA released the annual list of UK firms designated as other systemically important institutions (O-SIIs), along with the 2019 list of UK-headquartered global systemically important institutions (G-SIIs).

    November 29, 2019 WebPage Regulatory News
    News

    EBA Publishes Report on Risks and Vulnerabilities in EU Banking Sector

    EBA published its annual report on risks and vulnerabilities in the EU banking sector.

    November 29, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4250