Featured Product

    APRA Consults on Revisions to the Counterparty Credit Risk Framework

    August 03, 2017

    APRA published a discussion paper that sets out its response to the submissions on APRA’s September 2016 discussion paper on counterparty credit risk CCR for authorized deposit-taking institutions and a number of revised proposals for further consultation. It also revised drafts of Prudential Standard APS 112 Capital Adequacy: Standardized Approach to Credit Risk (APS 112) and Prudential Standard APS 180 Capital Adequacy: Counterparty Credit Risk (APS 180), which incorporate changes to APRA’s proposed new CCR requirements for authorized deposit-taking institutions. With regard to reporting-related revisions, APRA released three draft reporting standards (ARS 112.2, ARS 118.1, and ARS 180.0.) that set out proposed revisions to the corresponding reporting requirements as well as proposed reporting requirements on margining for non-centrally cleared derivatives. APRA has also released a letter to authorized deposit-taking institutions regarding minor amendments to APS 112, which APRA consulted on in September 2016. APRA invites written submissions on its proposals by September 29, 2017.

    APRA proposed finalizing these amendments at the same time as the CCR requirements. Collectively, the package sets out APRA’s proposed implementation of the Basel Committee on Banking Supervision’s standardized approach for measuring counterparty credit risk exposures (SA-CCR) and capital requirements for bank exposures to central counterparties. APRA proposes that an authorized deposit-taking institution with approval to use an internal ratings-based approach to credit risk must use the SA-CCR to measure its CCR exposures, while all other authorized deposit-taking institutions may continue to use the Current Exposure Method, subject to appropriate recalibration. The discussion paper also provides clarification on a range of other matters raised in earlier submissions. The new prudential and reporting requirements for CCR will take effect no earlier than January 01, 2019.

     

    Related Links

    CCR Revisions and Related Documents

    Proposed Minor Amendments to APS 112

     

    Comment Due Date: September 29, 2017

    Effective Date: January 01, 2019

    Keywords: Asia Pacific, Australia, Banking, CCR, SA CCR, Capital Adequacy, Credit Risk, APRA

    Related Articles
    News

    BoE Clarifies Approach to Treatment of Payment Holidays on Form PL

    BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.

    August 11, 2020 WebPage Regulatory News
    News

    BoE Provides Reporting Update on Form AS and Form FV

    BoE updated the known issues document for the statistical reporting Forms AS and FV.

    August 10, 2020 WebPage Regulatory News
    News

    FED Announces Capital Requirements for Large Banks

    FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.

    August 10, 2020 WebPage Regulatory News
    News

    SRB Publishes Guidance on Implementation of Bail-In Tool

    SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.

    August 10, 2020 WebPage Regulatory News
    News

    BIS Publishes Update on G20 TechSprint Initiative

    BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.

    August 10, 2020 WebPage Regulatory News
    News

    OSFI Provides Update on Implementation of IFRS 17 in Canada

    OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.

    August 07, 2020 WebPage Regulatory News
    News

    EBA Provides Clarity on Implementation of Guidance on COVID Reporting

    EBA updated the report on the implementation of selected COVID-19 policies.

    August 07, 2020 WebPage Regulatory News
    News

    FSI Note Discusses Challenges Associated with COVID Relief Measures

    The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.

    August 06, 2020 WebPage Regulatory News
    News

    BCBS Consults on Principles for Operational Risk and Resilience

    BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.

    August 06, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5649