Featured Product

    APRA to Implement Interim Reporting Standard on Credit Quality by 2022

    August 30, 2021

    The Australian Prudential Regulation Authority (APRA) finalized certain revisions to the credit risk management framework for authorized deposit-taking institutions. APRA has published a response to submissions on the interim version of ARS 220.0, the reporting standard on credit quality, in addition to the consequential changes to reporting standards affected by the implementation of APS 220, the reporting standard on credit risk management. In this context, the finalized reporting standards are ARS 220.0, ARS 743.0 on ABS/RBA Housing Finance, and ARS 199.0 for restricted authorized deposit-taking institutions. APRA will proceed with implementation of the interim ARS 220.0 commencing January 01, 2022. First submissions for the new reporting standard will be due on May 05, 2022.

    APRA considers that the implementation of interim ARS 220.0 is required to ensure alignment of reporting with the revised APS 220 from January 2022, maintaining its value for supervision, publication, and use by other agencies. In addition, implementing the interim ARS 220.0 creates a smoother, staged transition to APS 220 and a more accurate base to evaluate the implementation of ARS 220.0 and APRA’s new capital framework. Under the new APS 220, the term impaired will be replaced with the term non-performing. During consultation, three submissions from authorized deposit-taking institutions expressed a preference for additional lead time to develop and implement the full ARS 220.0. Thus, APRA will continue to consult with institutions during development of the full ARS 220.0 data cube and will consider feedback on the indicative implementation dates. In addition, APRA has amended ARS 743.0 to update two references to impaired exposures and replace them with non-performing in response to consultation feedback. These changes, like the other consequential amendments, will apply from January 01, 2022. Finally, in ARS 199.0, APRA replaced references to the word "impaired" with "non-performing" for the reporting form ARF 199.0 and modified instructions for this reporting form.

     

    Related Links

    Keywords: Asia Pacific, Australia, Banking, Credit Risk, ARS 220, APS 220, Reporting, Credit Exposures, NPLs, APRA

    Featured Experts
    Related Articles
    News

    US Regulators Release Stress Test Scenarios for Banks

    The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).

    February 28, 2024 WebPage Regulatory News
    News

    Asian Governments Aim for Interoperability in AI Governance Frameworks

    The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.

    February 28, 2024 WebPage Regulatory News
    News

    EBA Proposes Operational Risk Standards Under Final Basel III Package

    The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.

    February 26, 2024 WebPage Regulatory News
    News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News
    News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News
    News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News
    News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News
    News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8952