Featured Product

    APRA Proposes Phased Implementation of Reporting Standard ARS 220.0

    June 08, 2021

    APRA published a response letter to submissions on the draft Reporting Standard ARS 220.0 on credit exposures and provisions. In response to the industry feedback, APRA is proposing a phased implementation of ARS 220.0. An interim and simplified reporting standard will apply while authorized deposit-taking institutions develop their solutions for delivering the full suite of credit risk data collected by ARS 220.0. The appendix to the response letter outlines the high-level timeframe for the collection of this information; this timeline is indicative and will change as APRA gains a better understanding of the complexities involved in the design of the new collection.

    APRA is seeking to incorporate, into the final full reporting standards, data that support the updated credit risk capital framework requirements included in the prudential standard APS 112 on standardized approach to credit risk and the prudential standard APS 113 on internal ratings-based approach to credit risk. As part of the industry feedback to the October 2020 consultation, some authorized deposit-taking institutions indicated that they use pre-2006 versions of Australia and New Zealand Standard Industry Classification (ANZSIC) and indicated that they would need to re-work their systems to be able to report data by industry using ANZSIC 2006. APRA seeks feedback from authorized deposit-taking institutions on the impediments to transitioning to ANZSIC 2006 in time for full ARS 220.0 implementation in early 2023.

    APRA is also consulting on the consequential changes to the authorized deposit-taking institution reporting standards and forms that will be affected by the revised Prudential Standard APS 220 on credit risk management. APRA proposes for these consequential changes to be effective from January 01, 2022. APRA is inviting comments on the proposed changes by July 06, 2021. Under the new APS 220, the term impaired will no longer be used and will be replaced with the term non-performing. At present,, eight authorized deposit-taking institution reporting standards and the reporting taxonomy of Reporting Form ARF 743.0 on housing finance use the term impaired and refer to the current APS 220 on credit quality. Consequently, APRA proposes to align these reporting standards and forms to the revised prudential standard by replacing the term impaired with the new term non-performing. The updated draft reporting standards include the following:

    • ARS 112.1 on standardized credit risk on-balance sheet assets
    • ARS 120.2 on securitization supplementary items
    • ARS 199.0 on restricted and individual authorized deposit taking institution
    • ARS 210.0 on liquidity
    • ARS 220.0 on impaired facilities
    • ARS 223.0 on residential mortgage lending
    • ARS 230.0 on commercial property
    • ARS 325.0 on international operations

     

    Related Links

    Comment Due Date: July 06, 2021

    Effective Date: January 01, 2022 (Proposed)

    Keywords: Asia Pacific, Australia, Banking, Reporting, ARS 220, APS 220, Credit Risk, Regulatory Capital, Standardized Approach, Internal Ratings Based Approach, Residential Ratings Based Approach, APRA

    Featured Experts
    Related Articles
    News

    EBA Sets Out Roadmap for 2023, Updates Reporting Framework 3.2

    The European Banking Authority (EBA) published its work program for 2023 as well as the technical package for phase 3 of version 3.2 of its reporting framework.

    September 30, 2022 WebPage Regulatory News
    News

    FED Announces Launch of Climate Scenario Analysis Exercise in 2023

    The Board of Governors of the Federal Reserve System (FED) announced a pilot climate scenario analysis exercise for six largest banks in the U.S.

    September 29, 2022 WebPage Regulatory News
    News

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News
    News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News
    News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News
    News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News
    News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8523