{"id":"F2017L01028","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 4 of 2017","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-4-of-2017","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":96929,"registerId":"commonwealth-F2017L01028-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Financial Sector (Collection of Data) (reporting standard) determination No. 4 of 2017","content":"![](image.001.png)\n\nFinancial Sector (Collection of Data) (reporting standard) determination No. 4 of 2017\n\nReporting Standard ARS 731.3B International Banking Statistics – Immediate and Ultimate Risk Exposures – Foreign Entity\n\nFinancial Sector (Collection of Data) Act 2001\n\nI, Katrina Ellis, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901:\n\n(a) REVOKE Financial Sector (Collection of Data) (reporting standard) determination No. 29 of 2008, including Reporting standard ARS 231.3B International Exposures: Consolidated (Foreign Entity) made under that Determination; and\n\n(b) DETERMINE Reporting Standard ARS 731.3B International Banking Statistics - Immediate and Ultimate Risk Exposures – Foreign Entity (‘the reporting standard’), in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 3 of the reporting standard.\n\nUnder section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those financial sector entities, and the revoked reporting standard shall cease to apply, on 1 October 2017.\n\nThis instrument commences on 1 October 2017.\n\nDated: 08 August 2017\n\n\\[Signed\\]\n\nKatrina Ellis\n\nGeneral Manager\n\nData Analytics\n\n  \nInterpretation\n\nIn this Determination\n\n> APRA means the Australian Prudential Regulation Authority.\n\n> financial sector entity has the same meaning given by section 5 of the Act.\n\nSchedule\n\nReporting Standard ARS 731.3B International Banking Statistics - Immediate and Ultimate Risk Exposures – Foreign Entity comprises the 24 pages commencing on the following page.\n\n![](image.002.png)\n\nReporting Standard ARS 731.3B\n\nInternational Banking Statistics – Immediate and Ultimate Risk Exposures – Foreign Entity\n\nObjective of this Reporting Standard\n\nThis reporting standard outlines the requirements for the provision of information to APRA relating to a foreign subsidiary bank’s, or a branch of a foreign bank’s, international exposures.\n\nIt includes Reporting Form ARF 731.3B International Banking Statistics – Immediate and Ultimate Risk Exposures – Foreign Entity (ARF 731.3B) and the associated specific instructions.\n\nAuthority\n\n1.  This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\nPurpose\n\n2. Information collected by this Reporting Standard is used by APRA for the purposes of satisfying Australia’s obligations in providing aggregate international banking statistics to the Bank for International Settlements, and may be used by APRA for prudential regulation purposes. It may also be used by the Reserve Bank of Australia.\n\nApplication and commencement\n\n3. This reporting standard applies to an authorised deposit-taking institution (ADI) as set out in the table below.\n\n| Class of ADI             | Applicable |\n| ------------------------ | ---------- |\n| Australian-owned Bank    | No         |\n| Foreign Subsidiary Bank  | Yes        |\n| Branch of a Foreign Bank | Yes        |\n| Building Society         | No         |\n| Credit Union             | No         |\n| Other ADIs               | No         |\n\n4. This Reporting Standard applies for reporting periods ending on or after 31 December 2017.\n\nInformation required\n\n5. An ADI, to which this Reporting Standard applies, must provide APRA with the information required by ARF 731.3B on a domestic books basis in respect of each reporting period.\n\nForms and method of submission\n\n6. The information required by this Reporting Standard must be given to APRA in electronic format using the ‘Direct to APRA’ application or by a method notified by APRA, in writing, prior to submission.\n\nNote: the ‘Direct to APRA’ application software (also known as ‘D2A’) may be obtained from APRA.\n\nReporting periods and due dates\n\n7. Subject to paragraph 9, an ADI to which this Reporting Standard applies must provide the information required by this Reporting Standard in respect of each quarter ending 30 September, 31 December, 31 March and 30 June.\n\n8. The information required by this Reporting Standard must be provided to APRA within 28 calendar days after the end of the reporting period to which the information relates.\n\n9. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular ADI, to require it to provide the information required by this Reporting Standard more frequently, or less frequently, having regard to:\n\n(a) the particular circumstances of the ADI;\n\n(b) the extent to which the information is required for the purposes of the prudential supervision of the ADI; and\n\n(c) the requirements of the Bank for International Settlements or the Reserve Bank of Australia.\n\n10. APRA may grant an ADI an extension of a due date, in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.\n\nNote: for the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, an ADI is nonetheless required to submit the information required no later than the due date.\n\nQuality control\n\n11. The information provided by an ADI under this Reporting Standard must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI. Guidance Statement GS 012 Prudential Reporting Requirements for Auditors of Authorised Deposit-taking Institutions, issued by the Auditing and Assurance Standards Board, provides guidance on the scope and nature of the review and testing required from external auditors. This review and testing must be done on an annual basis or more frequently if necessary to enable the external auditor to form an opinion on the accuracy and reliability of the information.\n\n12. All information provided by an ADI under this Reporting Standard must be subject to processes and controls developed by the ADI for the internal review and authorisation of that information. These systems, processes and controls are to assure the completeness and reliability of the information provided.\n\nAuthorisation\n\n13. When an ADI submits information under this Reporting Standard using the D2A software or, other method as notified by APRA in writing, it will be necessary for an officer of the ADI to digitally sign, authorise and encrypt the relevant information. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the ADI who have authority from the ADI to transmit the information to APRA.\n\nMinor alterations to forms and instructions\n\n14. APRA may make minor variations to:\n\n(a) a form that is part of this Reporting Standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n(b) the instructions to a form, to clarify their application to the form\n\nwithout changing any substantive requirement in the form or instructions.\n\n15. If APRA makes such a variation it must notify in writing each ADI that is required to report under this reporting standard.\n\nTransitional\n\n16. An ADI must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked in the determination making this reporting standard (being the reporting standard which this reporting standard replaces).\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n(a) which ended before the date of revocation of the old reporting standard; and\n\n(b) in relation to which the ADI was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: for the avoidance of doubt, if an ADI was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the ADI is still required to provide the overdue reporting documents in accordance with the old reporting standard.\n\nInterpretation\n\n17. In this reporting standard:\n\nADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.\n\nAPRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.\n\nAustralian-owned bank means a locally incorporated ADI that assumes or uses the word ‘bank’ in relation to its banking business and is not a foreign subsidiary bank.\n\nbranch of a foreign bank means a ‘foreign ADI’ as defined in section 5 of the Banking Act 1959.\n\nbuilding society means a locally incorporated ADI that assumes or uses the expression ‘building society’ in relation to its banking business.\n\nclass of ADI means each of the following:\n\n(i) Australian-owned bank;\n\n(ii) foreign subsidiary bank;\n\n(iii) branch of a foreign bank;\n\n(iv) building society;\n\n(v) credit union; and\n\n(vi) other ADI.\n\ncredit union means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business.\n\ndue date means the last day of the 28 calendar days provided for in paragraph 8 or, if applicable, paragraph 10.\n\nforeign subsidiary bank means a locally incorporated ADI in which a bank that is not locally incorporated has a stake of more than 15 per cent.\n\nlocally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or Territory law.\n\nother ADI means an ADI that is not an Australian-owned bank, a branch of a foreign bank, a building society, a credit union or a foreign subsidiary bank.\n\nreporting period means a quarter of a year as provided for in paragraph 7 or, if applicable, paragraph 9.\n\n| ARF_731_3B: International Banking Statistics - Immediate and Ultimate Risk Exposures - Foreign Entity |\n| ----------------------------------------------------------------------------------------------------- |\n\n| Australian Business Number | Institution Name                 |\n| -------------------------- | -------------------------------- |\n|                            |                                  |\n| Reporting Period           | Scale Factor                     |\n| Quarterly                  | Millions to three decimal places |\n| Reporting Consolidation    |                                  |\n| Domestic book              |                                  |\n\n| Claims on an immediate borrower basis: by remaining maturity and country |\n| ------------------------------------------------------------------------ |\n\n| Vis-à-vis country | <=3 mths | >3 mths <=12 mths | >1yr <=2 yrs | >2yrs <=5 yrs | >5 yrs | Unallocated | Total |\n| ----------------- | -------- | ----------------- | ------------ | ------------- | ------ | ----------- | ----- |\n| (1)               | (2)      | (3)               | (4)          | (5)           | (6)    | (7)         | (8)   |\n|                   |          |                   |              |               |        |             |       |\n| Country list      |          |                   |              |               |        |             |       |\n\n| 1.1. Total |     |     |     |     |     |     |     |\n| ---------- | --- | --- | --- | --- | --- | --- | --- |\n\n| 2. Claims on an immediate borrower basis: by sector of borrower and country |\n| --------------------------------------------------------------------------- |\n\n| Vis-à-vis country | Banking institutions | Central banks | General government | Non-banking financial institutions | Non-financial corporations | Households and non-profits | Unallocated | Total |\n| ----------------- | -------------------- | ------------- | ------------------ | ---------------------------------- | -------------------------- | -------------------------- | ----------- | ----- |\n| (1)               | (2)                  | (3)           | (4)                | (5)                                | (6)                        | (7)                        | (8)         | (9)   |\n|                   |                      |               |                    |                                    |                            |                            |             |       |\n| Country list      |                      |               |                    |                                    |                            |                            |             |       |\n\n| 2.1. Total |     |     |     |     |     |     |     |     |\n| ---------- | --- | --- | --- | --- | --- | --- | --- | --- |\n\n| 3. Risk transfers |\n| ----------------- |\n\n| Vis-à-vis country | Outward risk transfer | Inward risk transfer | Net transfer of risk to the ultimate borrower |\n| ----------------- | --------------------- | -------------------- | --------------------------------------------- |\n| (1)               | (2)                   | (3)                  | (4)                                           |\n|                   |                       |                      |                                               |\n| Country list      |                       |                      |                                               |\n\n| 3.1. Total |     |     |     |\n| ---------- | --- | --- | --- |\n\n| 4. Claims on an ultimate risk basis |\n| ----------------------------------- |\n\n| Vis-à-vis country | Banking institutions | Central banks | General government | Non-banking financial institutions | Non-financial corporations | Households and non-profits | Unallocated | Total |\n| ----------------- | -------------------- | ------------- | ------------------ | ---------------------------------- | -------------------------- | -------------------------- | ----------- | ----- |\n| (1)               | (2)                  | (3)           | (4)                | (5)                                | (6)                        | (7)                        | (8)         | (9)   |\n|                   |                      |               |                    |                                    |                            |                            |             |       |\n| Country list      |                      |               |                    |                                    |                            |                            |             |       |\n\n| 4.1. Total |     |     |     |     |     |     |     |     |\n| ---------- | --- | --- | --- | --- | --- | --- | --- | --- |\n\n| 5. Derivative contracts, guarantees and credit commitments |\n| ---------------------------------------------------------- |\n\n| Vis-à-vis country | Derivative contracts | Guarantees | Credit commitments |\n| ----------------- | -------------------- | ---------- | ------------------ |\n| (1)               | (2)                  | (3)        | (4)                |\n|                   |                      |            |                    |\n| Country list      |                      |            |                    |\n\n| 5.1. Total |     |     |     |\n| ---------- | --- | --- | --- |\n\nReporting Form ARF 731.3B\n\nInternational Banking Statistics – Immediate Risk Exposures – Foreign Entity\n\nInstructions\n\nThese instructions assist in the completion of Reporting Form ARF 731.3B International Banking Statistics- Immediate Risk Exposures – Foreign Entity (ARF 731.3B) and is based on the Bank for International Settlements (BIS) Guidelines for reporting the BIS international banking statistics (BIS Guide). Reporting entities are encouraged to consult the BIS Guide for a detailed discussion of the rationale for, and uses of, the international banking statistics:\n\n[http://www.bis.org/statistics/bankstatsguide.htm](http://www.bis.org/statistics/bankstatsguide.htm)\n\nARF 731.3B has two purposes:\n\n-   to provide information on the international exposures of foreign banks operating in Australia; and\n\n-   to satisfy Australia’s obligation to the BIS in providing aggregate international banking statistics for Australia. These are available, along with statistics from other countries, on the BIS website ([http://www.bis.org/statistics/index.htm](http://www.bis.org/statistics/index.htm)).\n\nARF 731.3B is part of the international exposures forms. The four forms (listed below) make up the suite of international exposures forms:\n\n-   Reporting Form ARF 731.1 International Banking Statistics - Locational Data (ARF 731.1) collects data on claims and liabilities broken down by currency, counterparty sector, and counterparty country on a domestic books basis.\n\n-   Reporting Form ARF 731.3A International Banking Statistics - Immediate and Ultimate Risk Exposures - Domestic Entity (ARF 731.3A) collects data on claims broken down by counterparty country, maturity, counterparty sector and country on the greater of Leve1 or Level 2 basis.\n\n-   ARF 731.3B collects data on claims broken down by counterparty country, maturity, counterparty sector and country on domestic book basis.\n\n-   Reporting Form ARF 731.4 International Banking Statistics - Balance Sheet Items (ARF 731.4) collects a small number of balance sheet items on the greater of Leve1 or Level 2 basis.\n\nAustralian-owned banks complete ARF 731.1, ARF 731.3A and ARF 731.4.\n\nForeign subsidiary banks and branches of foreign banks complete ARF 731.1 and ARF 731.3B.  \n\nReporting level\n\nARF 731.3B is to be completed by all foreign subsidiary banks and foreign branch banks. Data is to be reported on a domestic book basis.\n\nDomestic books means an unconsolidated report of positions, transactions and other information recorded on the Australian books of the body corporate authorised by APRA to carry on banking business as per the Banking Act 1959. Includes transactions and positions with both residents and non-residents that are recorded on the Australian books of these entities.\n\nDo not consolidate positions, transactions and other information recorded on the books of Extended Licensed Entities (ELEs), of any other entity not consolidated at Level 1 (for example, related parties such as subsidiaries, SPVs or parent entities) and of overseas-based entities (e.g. overseas-based branches and offshore banking units (within the meaning of section 128AE of the Income Tax Assessment Act 1936)).\n\nReporting basis and unit of measurement\n\nARF 731.3B should be completed as at the last day of the stated quarter (i.e. March, June, September and December). Foreign subsidiary banks and branches of foreign banks should submit the completed return to APRA within 28 calendar days after the end of the reporting quarter.\n\nForeign subsidiary banks and branches of foreign banks are to complete the return in AUD millions to three (3) decimal places (with the data formatted to the nearest million).\n\nAmounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).\n\nReport all items on ARF 731.3B in accordance with Australian Accounting Standards unless otherwise specified.\n\nNetting of assets and liabilities\n\nPositions should generally be reported on a gross basis. However, reporting entities that are head offices exclude their claims on affiliates in any other country (as the data is reported on a consolidated basis).\n\nThis does not apply to derivative contracts.\n\nValuation\n\nAssets and liabilities should be measured in accordance with Australian accounting standards.\n\nNote: International financial claims should be reported gross of specific provisions and General Reserve for Credit Losses as defined by Prudential Standard APS 220 Credit Quality. Provisions and reserves are not to be included in ARF 731.1, ARF 731.3A or ARF 731.3B.\n\nWhen reporting the data, reporting entities should also ensure that all figures be prepared in accordance with applicable Australian accounting principles.\n\nAs a general rule, it is recommended that financial claims belonging to the banking book be valued at face values or cost prices and financial claims belonging to the trading book be valued at market or fair values which is largely consistent with AASB 139 Financial Instruments: Recognition and Measurement.\n\nFinancial claims resulting from derivative contracts should be valued at fair values (i.e. current credit exposure calculated as the sum of all positive fair values of derivative contracts outstanding after taking account of legally enforceable bilateral netting agreements) as this ensures consistency not only with the BIS OTC derivatives statistics but also with the valuation principles for all other on- and off-balance sheet items in the BIS international financial statistics. Negative fair values of derivative contracts are considered to represent financial liabilities and are therefore by definition excluded from the reporting of financial claims.\n\nContingent liabilities resulting from guarantees and credit commitments should be valued at face values or the maximum possible exposure.\n\nStandard Business Reporting (SBR)\n\nThe accounting type (i.e. credit or debit) is stated for all monetary items and represents the natural accounting type of the item collected.\n\nBackground to the international exposures forms\n\nThere are two main sets of international banking data: the locational and consolidated banking statistics.\n\nThe locational statistics (collected on ARF 731.1) collect data on the domestic book international financial claims (assets) and liabilities of resident banks.\n\nThe consolidated statistics (collected on ARF 731.3A, ARF 731.3B and ARF 731.4) collect data on the international on-balance sheet (and selected off-balance sheet) financial claims (i.e. contractual lending) of banks vis-à-vis the rest of the world and provides a measure of the risk exposure of lenders’ national banking systems. The data mainly cover contractual lending by the head office and all its branches and subsidiaries on a global consolidated basis, net of inter-office accounts. These statistics also provide information on the maturity (i.e. liquidity) and sector risk distribution of reporting entities’ contractual lending.\n\nAs reporting entities’ country risk exposures can differ substantially from that of contractual lending, information on claims on an ultimate risk basis is also collected. Claims on an ultimate risk factor in risk transfers such as guarantees and collateral.\n\nThe key difference between the two sets of BIS banking data is based upon the concept of residency. Locational statistics show the claims and liabilities of banks located in Australia vis-à-vis entities located in other countries, including inter-office positions, and domestic entities.\n\nThe consolidated statistics show the total claims of a reporting entity group’s global offices, including the claims of their domestic and foreign affiliates. Claims between offices of the same entity group are netted out.\n\nThe differences between locational and consolidated data are highlighted in an example in Figure 1. ABC Bank (headquartered in Sydney) has lent $10 million to a non-financial corporation located in France routed via its branch office in London.\n\nFigure 1: Flow of funds and BIS locational and consolidated statistics\n\n![](image.005.png)![](image.004.png)![](image.003.png)\n\n$10m $10m\n\n![](image.007.png)![](image.006.png)\n\nThe implications of this transaction for the BIS data are as follows:\n\nLocational statistics:\n\nAustralian resident bank (i.e. ABC Bank Sydney) will report to APRA a $10 million increase in locational claims on UK resident banks (ABC Bank London).\n\nThe UK resident bank will report to the UK regulator a $10 million increase in locational claims on a non-financial corporation resident in France.\n\nConsolidated statistics:\n\nAustralian resident reporting entities (i.e. ABC Bank, Sydney) will report a $10 million increase in consolidated claims on a non-financial corporation resident in France.\n\n  \n\nSpecific instructions\n\nTerms highlighted in bold italics indicate that the definition is provided in these instructions.\n\n1\\. Claims on an immediate borrower basis: by remaining maturity and counterparty country\n\nSBR: submit item 1 and item 2 with accounting type of debit (assets).\n\n| Item 1 | The counterparty country of the immediate borrower claims to be reported in item 1 column 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |\n| ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n|        | In item 1 column 2, report the immediate borrower claims for the selected counterparty country with a residual maturity of less than or equal to three months.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |\n|        | In item 1 column 3, report the immediate borrower claims for the selected counterparty country with a residual maturity of greater than three months and less than or equal to 1 year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |\n|        | In item 1 column 4, report the immediate borrower claims for the selected counterparty country with a residual maturity of greater than 12 months and less than or equal to 2 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |\n|        | In item 1 column 5, report the immediate borrower claims for the selected counterparty country with a residual maturity of greater than 2 years and less than or equal to 5 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |\n|        | In item 1 column 6, report the immediate borrower claims for the selected counterparty country with a residual maturity of greater than 5 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |\n|        | Item 1 column 7 is derived as:column 8 total immediate borrower claims; lessthe sum of columns 2-6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |\n|        | In item 1 column 8, report the total immediate borrower claims for the selected counterparty country.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |\n|        | Item 1.1 column 2 is derived as the total immediate borrower claims with a residual maturity of less than or equal to three months for all counterparty countries.Item 1.1 column 3 is derived as the total immediate borrower claims with a residual maturity of greater than three months and less than or equal to 12 months for all counterparty countries.Item 1.1 column 4 is derived as the total immediate borrower claims with a residual maturity of greater than 1 year and less than or equal to 2 years for all counterparty countries.Item 1.1 column 5 is derived as the total immediate borrower claims with a residual maturity of greater than 2 years and less than or equal to 5 years for all counterparty countries.Item 1.1 column 6 is derived as the total immediate borrower claims with a residual maturity of greater than 5 years for all counterparty countries.Item 1.1 column 7 is derived as the total immediate borrower claims with an unallocated residual maturity. Avoid reporting large amounts as unallocated for all counterparty countries.Item 1.1 column 8 is derived as the total immediate borrower claims for all counterparty countries for all counterparty countries. |\n\n2\\. Claims on an immediate borrower basis: by sector of borrower and counterparty country\n\n| Item 2 | In item 2 column 1, report the counterparty country of the immediate borrower claims.                                                                                                     |\n| ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n|        | In item 2 column 2, report the immediate borrower claims on banking institutions for the selected counterparty country.                                                                   |\n|        | In item 2 column 3, report the immediate borrower claims on central bank counterparties for the selected counterparty country.                                                            |\n|        | In item 2 column 4, report the immediate borrower claims on general government counterparties for the selected counterparty country.                                                      |\n|        | In item 2 column 5, report the immediate borrower claims on non-banking financial institutions for the selected counterparty country.                                                     |\n|        | In item 2 column 6, report the immediate borrower claims on non-financial corporations for the selected counterparty country.                                                             |\n|        | In item 2 column 7, report the immediate borrower claims on households and NPISHs for the selected counterparty country.                                                                  |\n|        | Item 2 column 8 is derived as:column 9 total immediate borrower claims; lessthe sum of columns 2-7.                                                                                       |\n|        | In item 2 column 7, report the total immediate borrower claims for the selected counterparty country.                                                                                     |\n|        | Item 2.1 column 2 is derived as the total immediate borrower claims on banking institutions for all counterparty countries.                                                               |\n|        | Item 2.1 column 3 is derived as the total immediate borrower claims on central bank counterparties for all counterparty countries.                                                        |\n|        | Item 2.1 column 4 is derived as the total immediate borrower claims on general government counterparties for all counterparty countries.                                                  |\n|        | Item 2.1 column 5 is derived as the total immediate borrower on non-banking financial institutions for all counterparty countries.                                                        |\n|        | Item 2.1 column 6 is derived as the total immediate borrower claims on non-financial corporations for all counterparty countries.                                                         |\n|        | Item 2.1 column 7 is derived as the total immediate borrower claims on households and NPISHs for all counterparty countries.                                                              |\n|        | Item 2.1 column 8 is derived as the total immediate borrower claims with an unallocated counterparty sector for all counterparty countries. Avoid reporting large amounts as unallocated. |\n|        | Item 2.1 column 9 is derived as the total immediate borrower claims for all counterparty countries for all counterparty countries.                                                        |\n\n3\\. Risk transfers\n\nSBR: submit item 3 column 2 accounting type of credit (negative asset), submit item 3 column 3 with accounting type of debit (asset).\n\n| Item 3 | In item 3 column 1, report the counterparty country of the risk transfer.                                                       |\n| ------ | ------------------------------------------------------------------------------------------------------------------------------- |\n|        | In item 3 column 2, report the outward risk transfers for the selected counterparty country.                                    |\n|        | In item 3 column 3, report the inward risk transfers for the selected counterparty country.                                     |\n|        | Item 3 column 4 is derived as the net of outward risk transfer and inwards risk transfer for the selected counterparty country. |\n|        | Item 3.1 column 2 is derived as the total outward risk transfers for all counterparty countries.                                |\n|        | Item 3.1 column 3 is derived as the total inward risk transfers for all counterparty countries.                                 |\n|        | Item 3.1 column 4 is derived as the total net transfer of risk for all counterparty countries.                                  |\n\n4\\. Claims on an ultimate risk basis\n\nSBR: submit item 4 with accounting type of debit (assets)\n\n| Item 4 | In item 4 column 1, report the counterparty country of the ultimate risk claims.                                                                      |\n| ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------- |\n|        | In in item 4 column 2, report the ultimate risk claims on banking institutions for the selected counterparty country.                                 |\n|        | In item 4 column 3, report the ultimate risk claims on central banks for the selected counterparty country.                                           |\n|        | In item 4 column 4, report the ultimate risk claims on general government counterparties for the selected counterparty country.                       |\n|        | In item 4 column 5, report the ultimate risk claims on non-banking financial institutions for the selected counterparty country.                      |\n|        | In item 4 column 6, report the ultimate risk claims on non-financial corporations for the selected counterparty country.                              |\n|        | In item 4 column 7, report the ultimate risk claims on households and NPISHs for the selected counterparty country.                                   |\n|        | Item 4 column 8 is derived as:column 9 total ultimate risk claims; lessthe sum of columns 2-7.                                                        |\n|        | In item 4 column 9, report the total ultimate risk claims for the selected counterparty country.                                                      |\n|        | Item 4.1 column 2 is derived as the total ultimate risk claims on banking institutions.                                                               |\n|        | Item 4.1 column 3 is derived as the total ultimate risk claims on central banks.                                                                      |\n|        | Item 4.1 column 4 is derived as the total ultimate risk claims on general government counterparties.                                                  |\n|        | Item 4.1 column 5 is derived as the total ultimate risk claims on non-banking financial institutions.                                                 |\n|        | Item 4.1 column 6 is derived as the total ultimate risk claims on non-financial corporations.                                                         |\n|        | Item 4.1 column 7 is derived as the total ultimate risk claims on households and NPISHs.                                                              |\n|        | Item 4.1 column 8 is derived as the total ultimate risk claims with an unallocated counterparty sector. Avoid reporting large amounts as unallocated. |\n|        | Item 4.1 column 9 is derived as the total ultimate risk claims.                                                                                       |\n\n5\\. Derivative contracts, guarantees and credit commitments\n\nSBR: submit item 5 with accounting type of debit (assets)\n\n| Item 5 | In item 5 column 1, report the counterparty country of the position the derivative contracts, guarantees and/or credit commitments. |\n| ------ | ----------------------------------------------------------------------------------------------------------------------------------- |\n|        | In item 5 column 2, report the derivative contracts in a net asset position vis-à-vis the selected counterparty country.            |\n|        | In item 5 column 3, report the guarantees vis-à-vis the selected counterparty country.                                              |\n|        | Report in item 5 column 4 the credit commitments vis-à-vis the selected counterparty country.                                       |\n\n|     | Item 5.1 column 2 is derived as the total derivative contracts in a net asset position for all counterparty countries. |\n| --- | ---------------------------------------------------------------------------------------------------------------------- |\n|     | Item 5.1 column 3 is derived as total guarantees for all counterparty countries.                                       |\n|     | Item 5.1 column 4 is derived as total credit commitments for all counterparty countries.                               |\n\n  \n\nDefinitions\n\nBanking institutions refers to financial institutions whose business it is to receive deposits or close substitutes for deposits and to grant credits or invest in securities on their own account, including credit unions and building societies. Money market funds, investment funds and pension funds are excluded from this category. For the purposes of ARF 731.3B, exclude central banks and international organisations (including multilateral development banks). These should be classified as central banks.\n\nCentral banks refers to central banks, including the RBA, BIS, the European Central Bank, and other official monetary authorities. A complete list of central banks is maintained on the BIS website at [http://www.bis.org/statistics/bankstatsguide.htm](http://www.bis.org/statistics/bankstatsguide.htm)\n\nClaims refers to:\n\n1.  Australian offices’ local claims on Australian residents in foreign currency \\- for example, any local claim of the Sydney office of a bank on a borrower resident in Australia; and\n\n2. Australian offices’ cross-border claims on non-residents in any currency \\- for example, any claim of the Sydney office of a bank on a borrower resident in New Zealand.\n\nThe data on financial claims should comprise all those balance sheet items, which represent claims on residents in other individual countries or economies. As in the locational statistics, the principal items are deposits and balances placed with banks, loans and advances to banks and non-banks, holdings of securities (including credit linked notes and other collateral debt obligations and asset-backed securities) and participations.\n\nExclude derivative contracts.\n\nConsolidated statistics – See section Background to the international exposures forms.\n\nCounterparty sector refers to the economic sector of the counterparty of the financial instrument. There are six counterparty sectors to be reported:\n\n-   Banking institutions;\n-   Central banks;\n-   General government;\n-   Non-banking financial institutions;\n-   Non-financial corporations;\n-   Households and non-profit institutions serving households (NPISHs); and\n-   Unallocated sector.\n\nCounterparty Country refers to where the counterparty of the financial instrument is domiciled.\n\nCountries are as per ISO 3166, available at [http://www.iso.org/iso/country\\_codes](http://www.iso.org/iso/country_codes)\n\nCredit commitments represent arrangements that irrevocably obligate an institution, at a client’s request, to extend credit in the form of loans, participation in loans, lease financing receivables, mortgages, overdrafts, other loan substitutes, commitments to extend credit in the form of the purchase of loans, securities or other assets, such as back-up facilities including those under note issuance facilities and revolving underwriting facilities.\n\nCross-border claims refers to claims of an Australian office on non-residents, and offshore offices on counterparties which are not residents of the host country (for example, the claims of a New Zealand domiciled subsidiary on both Australian residents and residents of any other country).\n\nDerivative contracts includes all derivatives instruments with a positive fair value, independent of whether the derivative contracts are booked as off- or on-balance sheet items. The data should be reported on a level 2 consolidated and ultimate risk basis i.e. inter-office positions should be netted out and the positions should be allocated to the country where the final risk lies.\n\nHowever, credit derivatives, such as credit default swaps and total return swaps, should only be reported under the derivative contracts item if they belong to the trading book of a protection buying reporting entity. Credit derivatives which belong to the banking book should be reported as risk transfers by the protection buyer and, all credit derivatives should be reported as guarantees by the protection seller.\n\nFinancial claims resulting from derivative contracts should be valued at fair values (i.e. current credit exposure calculated as the sum of all positive fair values of derivative contracts outstanding after taking account of legally enforceable bilateral netting agreements) as this ensures consistency not only with the BIS OTC derivatives statistics but also with the valuation principles for all other on- and off-balance sheet items in the BIS international financial statistics. Negative fair values of derivative contracts are considered to represent financial liabilities and are therefore by definition excluded from the reporting of claims.\n\nNote: This definition of derivative contracts differs to that used in ARF 731.1.\n\nForeign currency refers to claims or liabilities of an Australian office not in AUD, and claims of offshore offices not in the currency of the host country (for example, claims of a New Zealand domiciled subsidiary denominated in AUD or USD).\n\nGeneral government refers to federal, state and local government and social security funds both in Australia and overseas (the general government sector), and non-profit institutions financed by general government. Exclude public non-bank financial institutions and public non-financial corporations. These should be classified as non-bank financial institutions or non-financial corporations, respectively. Exclude central banks and international organisations (including multilateral development banks). These should be classified as central banks.\n\nGuarantees represent contingent liabilities arising from an irrevocable obligation to pay to a third party beneficiary when a client fails to perform some contractual obligations. They include secured, bid and performance bonds, warranties and indemnities, confirmed documentary credits, irrevocable and stand-by letters of credits, acceptances and endorsements. Guarantees also include the contingent liabilities of the protection seller of credit derivative contracts.\n\nGuarantees should be reported to the extent that they represent the unutilised portions of both binding contractual obligations and any other irrevocable commitments. Performance bonds and other forms of guarantee should only be reported if, in the event of the contingency occurring, the resulting claim would have an impact on total cross-border claims and local claims in any currency.\n\nHouseholds and non-profit institutions serving households (NPISHs) refers to households, non-profit entities such as charities, religious institutions, trade unions and consumer associations. Also include unincorporated enterprise owned by households.\n\nImmediate borrower claims refers to all on-balance sheet financial claims, excluding derivative contracts and lending of securities, gold and other precious metals without cash collateral.\n\nInwards risk transfer is a risk transfer that reallocates the claim into the country being reported. Examples of risk transfers are shown in the attachment.\n\nLocal claims refers to claims of an Australian office on Australian residents, and claims of offshore offices on residents of the host country (for example, the claims on New Zealand residents of a New Zealand domiciled subsidiary).\n\nLocational statistics – See section Background to the international exposures forms.\n\nMaturity refers to the residual maturity of on-balance claims.\n\n-   Claims are to be entered according to their remaining maturity.\n-   Deposits that are repayable on demand should be allocated to the shortest maturity bracket.\n-   Overdue items should be allocated to the shortest maturity bracket (i.e. ‘< 3 months’).\n-   Claims that cannot be classified by maturity, such as equity and participations, should be assigned to a residual category ‘unallocated’.\n-   Remaining maturities should be defined on the basis of the time to final payment of the relevant claim.\n-   The maturity classification of revolving credit facilities should be based on the term to loan rollover, which would typically be in the ‘< 3 months’ maturity bracket.\n-   Overdrafts should be allocated to the shortest maturity bracket (i.e. ‘< 3 months’).\n\nNet transfer of risk is the net of outwards risk transfer and inwards risk transfer for a given country.\n\nNon-banking financial institutions refers to private or public financial institutions which are not banking institutions, and are engaged primarily in the provision of financial services and activities auxiliary to financial intermediation, such as fund management. Include special purpose vehicles, hedge funds, securities brokers, money market funds, pension funds, insurance companies, financial leasing corporations, central clearing counterparties, unit trusts, other financial auxiliaries and other captive financial institutions. Also include any public financial institutions such as development banks and export credit agencies.\n\nNon-financial corporations refers to both public and private non-financial corporations and unincorporated enterprise, such as partnerships and branches of foreign corporations.\n\nNon-residents are any entity whose centre of predominant economic interest is outside Australia’s economic territory.\n\nInclude:\n\n-   households whose principal place of residence is overseas; and\n-   foreign branches and foreign subsidiaries of Australian enterprises, for example, a foreign branch of an Australian bank.\n\nExclude:\n\n-   Australian-based branches and subsidiaries of foreign enterprises, for example, Australian branches of foreign banks.\n\nOutwards risk transfer is a risk transfer that reallocates the claim from the country being reported. Examples of risk transfers are shown in the attachment.\n\nResidents of Australia are any entity whose centre of predominant economic interest is within Australia’s economic territory.\n\nInclude:\n\n-   households whose principal place of residence is in Australia; and\n-   Australian branches and Australian subsidiaries of foreign enterprises, for example, Australian branches of foreign banks.\n\nExclude:\n\n-   foreign branches and foreign subsidiaries of Australian enterprises, for example, foreign branches of Australian banks.\n\nRisk transfers refers to where claims that have been reallocated from the country of the immediate borrower to the country of ultimate risk as a result of guarantees, collateral, and credit derivatives which are part of the banking book. This includes risk-transfers between different economic sectors in the same country.\n\nThe information on the reallocation of claims should be reported as net risk transfers, i.e. the difference of reallocated claims that increase the exposure (inward risk transfers) and those, which reduce the exposure (outward risk transfers) vis-à-vis a given country. All outward and inward risk transfers should add up to the same total.\n\nThe risk reallocation should also cover loans to domestic borrowers that are guaranteed by foreign entities that therefore represent inward risk transfers and increase the exposure to the country of the guarantor. Equally foreign lending that is guaranteed by Australian entities (e.g. a domestic export credit agency such as the Export Finance and Insurance Corporation) should be reported as an outward risk transfer, which reduces the exposure to the country of the foreign borrower.\n\nIn summary, there are four potential forms of risk reallocation:\n\n1.  Lending to a non-resident that is guaranteed by a non-resident third party.\n\nIn this case both the outward risk transfer from the original borrower and the risk transfer to the guarantor have to be reported.\n\nii. Lending to a non-resident that is guaranteed by an Australian resident third party.\n\nIn this case both the outward risk transfer from the original non-resident borrower has to be reported as well as the inward risk transfer to Australia.\n\niii. Lending to a resident that is guaranteed by a non-resident third party.\n\nIn this case, report the outward risk transfer from Australia as well as the inward risk transfer to the non-resident guarantor.\n\niv. Lending to a non-resident where the exposure is extinguished by receiving a cash collateral.\n\nIn this case only the outward risk transfer from the original non-resident borrower has to be reported (but no inward risk transfer to Australia).\n\nExamples of risk transfers are shown in the attachment.\n\nUltimate risk claims refers to claims allocated to the country where the final risk lies. That is, the country in which the guarantor of a financial claim resides and/or the country in which the head office of a legally dependent branch is located. Collateral may be considered as an indicator of where the final risk lies to the extent that is recognised as a risk mitigant under the Basel Committee on Banking Supervision’s capital framework.\n\nSimilarly, if credit derivatives are used to cover the counterparty risk of financial claims in the banking book, the country of ultimate risk of these positions is defined as the country in which the counterparty to the credit derivative contract resides.\n\nIn case of holdings of credit linked notes, collateral debt obligations and asset-backed securities a ‘look-through’ approach should be adopted. The country of ultimate risk is defined as the country where the debtor of the underlying credit, security or derivative contract resides.\n\nIt is recognised that this ‘look-through’ approach might not always be possible for practical reasons. Accordingly, reporting entities might only be able to provide estimates for the allocation of claims to the country where the debtor of the underlying risk resides or to allocate the claims to the country of the immediate borrower that is the country where the issuer of the securities resides.\n\nThe issuer (or protection buyer) of credit linked notes, collateral debt obligations and asset backed securities should regard the issuance of a security backed by financial claims, and sale to investors, as a cash collateral which extinguishes the exposure of the issuer to the underlying claim.\n\nClaims on separately capitalised subsidiaries can only be considered as being guaranteed by the head office if the parent has provided an explicit guarantee. In contrast, any claims on non-incorporated branches should for the purposes of the consolidated statistics always be considered as guaranteed by the respective head office, even if there is no legal guarantee.\n\nUnallocated sector refers to where the counterparty sector is unknown.\n\n  \n\nAttachment: Examples of reporting of risk transfers\n\nExample 1\n\nAn Australian resident has granted a loan of AUD 10 million to a manufacturer in Hong Kong, which is guaranteed by a bank in Japan. The Australian resident bank should report the claim as an outward risk transfer from Hong Kong and an inward risk transfer to Japan. In ARF 731.3A, this example will look as follows:\n\n|           | Immediate risk | Outward risk transfers | Inwards risk transfers | Net risk transfers |\n| --------- | -------------- | ---------------------- | ---------------------- | ------------------ |\n| Hong Kong | 10             | 10                     |                        | -10                |\n| Japan     |                |                        | 10                     | 10                 |\n\nExample 2\n\nIf in example 1, an Australian resident bank guarantees the claim instead, the claim should be reported as an outward risk transfer from Hong Kong and an inward risk transfer to Australia.\n\n|           | Immediate risk | Outward risk transfers | Inwards risk transfers | Net risk transfers |\n| --------- | -------------- | ---------------------- | ---------------------- | ------------------ |\n| Australia |                |                        | 10                     | 10                 |\n| Hong Kong | 10             | 10                     |                        | -10                |\n\nExample 3\n\nIf in example 1, the manufacturer were resident in Australia, the claim would have to be reported as an outward risk transfer from Australia and an inward risk transfer to Japan.\n\n|           | Immediate risk | Outward risk transfers | Inwards risk transfers | Net risk transfers |\n| --------- | -------------- | ---------------------- | ---------------------- | ------------------ |\n| Australia | 10             | 10                     |                        | -10                |\n| Japan     |                |                        | 10                     | 10                 |\n\nExample 4\n\nIf in example 1, the manufacturer were resident in Japan, the claim would have to be reported as an outward risk transfer from the non-financial corporations sector in Japan and an inward risk transfer to the banking institutions sector in Japan.\n\n|       | Immediate risk | Outward risk transfers | Inwards risk transfers | Net risk transfers |\n| ----- | -------------- | ---------------------- | ---------------------- | ------------------ |\n| Japan |                | 10                     | 10                     | 0                  |\n\nAs a result, the data in item 5.1 column 2 Claims on an ultimate risk basis should be $10 million higher than the amount in item 2 column 8 Claims on an immediate risk basis by sector. Item 5 column 8 Claims on an ultimate risk basis worksheet should be $10 million lower than the amount in item 2 column 8 for Japan.\n\nExample 5\n\nIf in example 4, the loan were granted by a subsidiary of an Australian-owned bank in Hong Kong, the claim would have to be reported as an outward risk transfer from Hong Kong and an inward risk transfer to Japan (remembering that the loan is guaranteed by a bank in Japan).\n\n|           | Immediate risk | Outward risk transfers | Inwards risk transfers | Net risk transfers |\n| --------- | -------------- | ---------------------- | ---------------------- | ------------------ |\n| Hong Kong |                | 10                     |                        | -10                |\n| Japan     |                |                        | 10                     | 10                 |\n\nAs a result, the data in item 5 columns 2 and 7 Claims on an ultimate risk basis for Japan will be $10 million higher than in item 2 columns 2 or 9 Claims on an immediate risk basis by sector, depending on whether the claim was denominated in Hong Kong dollars or any other currency. In addition, the data in item 5 columns 6 and 9 Claims on an ultimate risk basis for Hong Kong would be $10 million lower than in item 2 columns 6 or 9 Claims on an immediate risk basis by sector.\n\nExample 6\n\nAn Australian resident bank makes an AUD 10 million loan to the Wellington branch of a US bank. The loan should be reported as a claim against New Zealand in items 1 and 2 (Claims on an immediate borrower basis), as an outward risk transfer from New Zealand, and as an inward risk transfer to USA.\n\n|             | Immediate risk | Outward risk transfers | Inwards risk transfers | Net risk transfers |\n| ----------- | -------------- | ---------------------- | ---------------------- | ------------------ |\n| New Zealand | 10             | 10                     |                        | -10                |\n| Australia   |                |                        | 10                     | 10                 |\n\nExample 7\n\nAn AUD 10 million claim on the Wellington branch of another Australian-incorporated bank should be included against New Zealand in items 1 and 2 (Claims on an immediate borrower basis) and as an inward risk transfer for Australia.\n\n|             | Immediate risk | Outward risk transfers | Inwards risk transfers | Net risk transfers |\n| ----------- | -------------- | ---------------------- | ---------------------- | ------------------ |\n| Australia   |                |                        | 10                     | 10                 |\n| New Zealand | 10             | 10                     |                        | -10                |\n\nExample 8\n\nA claim in AUD or any other currency on the Sydney office of a US bank (or on an Australian company with a US guarantor), is included in in items 1 and 2 (Claims on an immediate borrower basis). An outward risk transfer in respect of such a claim should be reported against Australia and an inward risk transfer to USA.\n\n|           | Immediate risk | Outward risk transfers | Inwards risk transfers | Net risk transfers |\n| --------- | -------------- | ---------------------- | ---------------------- | ------------------ |\n| Australia | 10             | 10                     |                        | -10                |\n| USA       |                |                        | 10                     | 10                 |","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"The instrument replaces the prior 2008 Determination but, on its face, retains narrow application: it applies only to foreign subsidiary banks and branches of foreign banks and collects domestic‑books international exposure data (paras 1(a),3,5). The text does not show an expansion of the classes of ADI required to report."},"complexity_factors":["Technical valuation and currency conversion rules referencing Australian accounting standards and AASB 121/AASB 139 (Instructions: Valuation; Reporting basis)","Two statistical frameworks (locational vs consolidated/ultimate risk) and required reconciliations across forms (Background to the international exposures forms)","Detailed country × sector × maturity matrix with derived columns and aggregation rules (ARF 731.3B form and Specific instructions items 1–2)","Risk‑transfer / ultimate‑risk allocation rules requiring look‑through, guarantees and credit‑derivative treatment (Definitions: Risk transfers; Ultimate risk claims)","Mandatory external auditor review of processes and internal controls, with annual (or more frequent) testing (para 11)","APRA discretion to change reporting frequency, require more/less frequent reporting for particular ADIs, grant extensions, and make minor form variations (paras 9–10,14–15)","Electronic submission and digital certificate authorisation requirement (para 6,13)","Exclusions and consolidation rules (domestic books only; do not consolidate certain entities or offshore units) that affect unit‑of‑reporting (Reporting level; Domestic books)","Specific treatment differences for derivatives, credit derivatives, guarantees and credit commitments with valuation exceptions (Definitions: Derivative contracts; Guarantees; Credit commitments)","Transitional reporting rules and the revocation of the prior Determination, requiring mapping/migration of legacy reports (paras 1(a),16)"],"plain_english_summary":"This instrument revokes the 2008 standard and establishes Reporting Standard ARS 731.3B, which requires foreign subsidiary banks and branches of foreign banks to submit quarterly, detailed international exposures on a domestic‑books basis to APRA (paras 1–5,7–8). APRA says the data will satisfy BIS reporting obligations and support prudential supervision (para 2).\n\nReporting entities bear the compliance, audit and data‑conversion costs. APRA can vary reporting frequency, grant extensions, make minor form changes and requires electronic submission with digital authorisation and audited internal controls (paras 6,9–15,11–13)."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation maintains its original scope as a technical reporting standard for international banking statistics. It replaces a 2008 predecessor (ARS 231.3B) with an updated version (ARS 731.3B) that aligns with revised Bank for International Settlements guidelines. The scope remains tightly focused on foreign-owned banks' international exposures and does not expand beyond its original purpose of collecting data for prudential supervision and international statistical obligations."},"complexity_factors":["Extensive cross-referencing to international standards (BIS Guidelines, ISO 3166 country codes, AASB accounting standards)","Dual reporting concepts requiring understanding of both 'immediate borrower basis' and 'ultimate risk basis' — the latter involving complex risk transfer calculations","Detailed sector classifications with specific inclusions/exclusions (e.g., central banks vs banking institutions, treatment of SPVs and hedge funds)","Conditional logic for risk transfers with 8 detailed worked examples showing different scenarios (guarantees, collateral, credit derivatives, branch structures)","Specific valuation rules that differ by instrument type (face value for banking book, fair value for trading book, specific treatment for derivatives)","24 pages of content with approximately 25 defined terms in the interpretation section","Nested exceptions in definitions (e.g., credit derivatives treated differently depending on whether in trading book vs banking book, and whether entity is protection buyer vs seller)","Transitional provisions requiring parallel reporting under old and new standards for overlapping periods"],"plain_english_summary":"This APRA reporting standard requires foreign-owned banks operating in Australia — both Australian-incorporated foreign subsidiaries and branches of overseas banks — to submit quarterly electronic returns on their international lending and off‑balance‑sheet exposures so APRA can supervise prudential risk and meet BIS reporting obligations. \n\nIt tightens how immediate versus ultimate credit risk is assigned (looking through guarantees), replaces the 2008 rule, and mandates AUD reporting, D2A submission and annual auditor verification."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-4-of-2017","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-4-of-2017/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-4-of-2017/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-4-of-2017/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-4-of-2017/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-4-of-2017/documents"}}