Reporting Standard ARS 221.0 (2005)
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Commonwealth legislation
This Act has been repealed and is no longer in force. It is retained for historical reference.
What it does. This standard requires every authorised deposit‑taking institution (ADI) to report its large credit and liability exposures to APRA — generally quarterly — using prescribed forms and submission methods. APRA collects the data for prudential supervision; the Reserve Bank and ABS may also use it (Purpose, para 1).
Who acts and what changes. Reporting, audit‑tested controls, sign‑off and timely submission are obligations on ADIs (paras 3–5, 8–13). APRA can change frequencies, grant extensions, alter form instructions and determine ADI classifications (paras 7–9, 14–15, 18–19).
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Direct links to the current provisions in Financial Sector (Collection of Data) determination No. 74 of 2005.
This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires all authorised deposit-taking institutions (ADIs), including foreign ADIs operating in Australia through branch operations, to report to APRA, generally on a quarterly basis, in relation to their large exposures.
This reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with:
An ADI must provide APRA with the information required by the version of Form ARF 221.0 designated for a ‘Licensed ADI’ for each reporting period.
An ADI that is the highest parent entity in relation to a consolidated ADI group must provide APRA with the information required by the version of Form ARF 221.0 designated for a ‘Consolidated Group’ for each reporting period.
(a) in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or
(b) manually completed on paper, which must be faxed or mailed to APRA’s head office.
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Reporting periods and due dates
Subject to paragraph 7, an ADI must provide the information required by this reporting standard for each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.
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:
(a) the particular circumstances of the ADI;
(b) the extent to which the information is required for the purposes of the prudential supervision of the ADI; and
(c) the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics.
(a) in the case of the information required by paragraphs 3 and 4 from a locally-incorporated bank, locally-incorporated special service provider or foreign ADI (other than a specialist credit card institution) – 20 business days after the end of the reporting period to which the information relates; and
(b) in the case of the information required by paragraphs 3 and 4 from a locally- incorporated credit union, locally-incorporated building society, specialist credit card institution (whether locally-incorporated or not) or Cairns Penny Savings & Loans Limited – 15 business days after the end of the reporting period to which the information relates.
The information provided by an ADI under this reporting standard (except for the information required under paragraph 4) must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI. AGS 1008 ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’, issued by the Auditing and Assurances Standards Board of the Australian Accounting Research Foundation, 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 data.
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. It is the responsibility of the board and senior management of the ADI to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.
If an ADI submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the ADI to digitally sign, authorise and encrypt the relevant data. 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 data to APRA.
If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:
(a) the Principal Executive Officer of the ADI; or
(b) the Chief Financial Officer of the ADI (whatever his or her official title may be).
(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
(b) the instructions to a form, to clarify their application to the form
without changing any substantive requirement in the form or instructions.
Transitional
Interpretation - classifications of ADIs
16.17.In this reporting standard:
Accounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the accounting standard) commencing immediately before 1 January 2005.
ADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.
ADI list means the attached ADI list.
building society means an ADI whose name appears under the heading ‘Building Societies’ in the ADI list.
consolidated ADI group means a group comprising:
(a) an ADI that is a highest parent entity; and
(b) each subsidiary (within the meaning of Accounting Standard AASB 1024) of that ADI, whether the subsidiary is locally-incorporated or not, other than a subsidiary that is excluded by the instructions attached to this standard.
credit union means an ADI whose name appears under the heading ‘Credit Unions’ in the ADI list.
foreign ADI means an ADI that is not incorporated in Australia.
highest parent entity means an ADI that satisfies all of the following conditions:
(a) it is locally-incorporated;
(b) it has at least one subsidiary (within the meaning of Accounting Standard AASB 1024); and
(c) it is not itself a subsidiary (within the meaning of Accounting Standard AASB 1024) of an ADI that is locally-incorporated.
locally-incorporated means incorporated in Australia.
locally-incorporated bank means an ADI whose name appears under the heading ‘Australian-owned Banks’ or ‘Foreign Subsidiary Banks’ in the ADI list.
special service provider means an ADI whose name appears under the heading ‘Other ADIs’ in the ADI list (other than Cairns Penny Savings & Loans Limited).
specialist credit card institution means an ADI whose name appears under the heading ‘Specialist Credit Card Institutions (SCCIs)’ in the ADI list.
17.18.If an ADI is not in the ADI list, then:
(a) if the ADI assumes or uses the word ‘bank’ in relation to its financial business, and is locally-incorporated, it is taken to be a locally-incorporated bank for the purposes of this reporting standard;
(b) if the ADI assumes or uses the expression ‘building society’ in relation to its financial business, and is locally-incorporated, it is taken to be a locally-incorporated building society for the purposes of this reporting standard;
(c) if the ADI assumes or uses the expression ‘credit union’, ‘credit society’ or ‘credit co-operative’ in relation to its financial business, and is locally-incorporated, it is taken to be a credit union for the purposes of this reporting standard;
(d) if an ADI engages in credit card issuing or credit card acquiring, or both, and does not otherwise carry on banking business within the meaning of section 5 of the Banking Act 1959, it is taken to be a specialist credit card institution for the purposes of this reporting standard.
18.19.APRA may in writing determine that an ADI is taken to be a locally-incorporated bank, locally-incorporated building society, locally-incorporated credit union, specialist credit card institution or locally-incorporated special service provider for the purposes of this reporting standard (even if, under paragraph 17 or 18, it comes within a different classification).
Interpretation - other definitions
19.20.In this reporting standard:
business days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.
Principal Executive Officer means the principal executive officer of the ADI for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the entity.
reporting period means a reporting period under paragraph 6 or, if applicable, paragraph 7.
The ADI list
Foreign-owned SCCIs
Locally Incorporated SCCIs
These companies are run by industry bodies and provide services (e.g. payments clearing) to member building societies and credit unions.
One ADI that provides general banking services which does not fall into the other categories.
This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires all authorised deposit-taking institutions (ADIs), including foreign ADIs operating in Australia through branch operations, to report to APRA, generally on a quarterly basis, in relation to their large exposures.
This reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with:
An ADI must provide APRA with the information required by the version of Form ARF 221.0 designated for a ‘Licensed ADI’ for each reporting period.
An ADI that is the highest parent entity in relation to a consolidated ADI group must provide APRA with the information required by the version of Form ARF 221.0 designated for a ‘Consolidated Group’ for each reporting period.
(a) in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or
(b) manually completed on paper, which must be faxed or mailed to APRA’s head office.
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Reporting periods and due dates
Subject to paragraph 7, an ADI must provide the information required by this reporting standard for each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.
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:
(a) the particular circumstances of the ADI;
(b) the extent to which the information is required for the purposes of the prudential supervision of the ADI; and
(c) the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics.
(a) in the case of the information required by paragraphs 3 and 4 from a locally-incorporated bank, locally-incorporated special service provider or foreign ADI (other than a specialist credit card institution) – 20 business days after the end of the reporting period to which the information relates; and
(b) in the case of the information required by paragraphs 3 and 4 from a locally- incorporated credit union, locally-incorporated building society, specialist credit card institution (whether locally-incorporated or not) or Cairns Penny Savings & Loans Limited – 15 business days after the end of the reporting period to which the information relates.
The information provided by an ADI under this reporting standard (except for the information required under paragraph 4) must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI. AGS 1008 ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’, issued by the Auditing and Assurances Standards Board of the Australian Accounting Research Foundation, 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 data.
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. It is the responsibility of the board and senior management of the ADI to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.
If an ADI submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the ADI to digitally sign, authorise and encrypt the relevant data. 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 data to APRA.
If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:
(a) the Principal Executive Officer of the ADI; or
(b) the Chief Financial Officer of the ADI (whatever his or her official title may be).
(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
(b) the instructions to a form, to clarify their application to the form
without changing any substantive requirement in the form or instructions.
Transitional
Interpretation - classifications of ADIs
16.17.In this reporting standard:
Accounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the accounting standard) commencing immediately before 1 January 2005.
ADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.
ADI list means the attached ADI list.
building society means an ADI whose name appears under the heading ‘Building Societies’ in the ADI list.
consolidated ADI group means a group comprising:
(a) an ADI that is a highest parent entity; and
(b) each subsidiary (within the meaning of Accounting Standard AASB 1024) of that ADI, whether the subsidiary is locally-incorporated or not, other than a subsidiary that is excluded by the instructions attached to this standard.
credit union means an ADI whose name appears under the heading ‘Credit Unions’ in the ADI list.
foreign ADI means an ADI that is not incorporated in Australia.
highest parent entity means an ADI that satisfies all of the following conditions:
(a) it is locally-incorporated;
(b) it has at least one subsidiary (within the meaning of Accounting Standard AASB 1024); and
(c) it is not itself a subsidiary (within the meaning of Accounting Standard AASB 1024) of an ADI that is locally-incorporated.
locally-incorporated means incorporated in Australia.
locally-incorporated bank means an ADI whose name appears under the heading ‘Australian-owned Banks’ or ‘Foreign Subsidiary Banks’ in the ADI list.
special service provider means an ADI whose name appears under the heading ‘Other ADIs’ in the ADI list (other than Cairns Penny Savings & Loans Limited).
specialist credit card institution means an ADI whose name appears under the heading ‘Specialist Credit Card Institutions (SCCIs)’ in the ADI list.
17.18.If an ADI is not in the ADI list, then:
(a) if the ADI assumes or uses the word ‘bank’ in relation to its financial business, and is locally-incorporated, it is taken to be a locally-incorporated bank for the purposes of this reporting standard;
(b) if the ADI assumes or uses the expression ‘building society’ in relation to its financial business, and is locally-incorporated, it is taken to be a locally-incorporated building society for the purposes of this reporting standard;
(c) if the ADI assumes or uses the expression ‘credit union’, ‘credit society’ or ‘credit co-operative’ in relation to its financial business, and is locally-incorporated, it is taken to be a credit union for the purposes of this reporting standard;
(d) if an ADI engages in credit card issuing or credit card acquiring, or both, and does not otherwise carry on banking business within the meaning of section 5 of the Banking Act 1959, it is taken to be a specialist credit card institution for the purposes of this reporting standard.
18.19.APRA may in writing determine that an ADI is taken to be a locally-incorporated bank, locally-incorporated building society, locally-incorporated credit union, specialist credit card institution or locally-incorporated special service provider for the purposes of this reporting standard (even if, under paragraph 17 or 18, it comes within a different classification).
Interpretation - other definitions
19.20.In this reporting standard:
business days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.
Principal Executive Officer means the principal executive officer of the ADI for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the entity.
reporting period means a reporting period under paragraph 6 or, if applicable, paragraph 7.
This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires all authorised deposit-taking institutions (ADIs), including foreign ADIs operating in Australia through branch operations, to report to APRA, generally on a quarterly basis, in relation to their large exposures.
This reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with:
An ADI must provide APRA with the information required by the version of Form ARF 221.0 designated for a ‘Licensed ADI’ for each reporting period.
An ADI that is the highest parent entity in relation to a consolidated ADI group must provide APRA with the information required by the version of Form ARF 221.0 designated for a ‘Consolidated Group’ for each reporting period.
(a) in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or
(b) manually completed on paper, which must be faxed or mailed to APRA’s head office.
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Reporting periods and due dates
Subject to paragraph 7, an ADI must provide the information required by this reporting standard for each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.
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:
(a) the particular circumstances of the ADI;
(b) the extent to which the information is required for the purposes of the prudential supervision of the ADI; and
(c) the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics.
(a) in the case of the information required by paragraphs 3 and 4 from a locally-incorporated bank, locally-incorporated special service provider or foreign ADI (other than a specialist credit card institution) – 20 business days after the end of the reporting period to which the information relates; and
(b) in the case of the information required by paragraphs 3 and 4 from a locally- incorporated credit union, locally-incorporated building society, specialist credit card institution (whether locally-incorporated or not) or Cairns Penny Savings & Loans Limited – 15 business days after the end of the reporting period to which the information relates.
The information provided by an ADI under this reporting standard (except for the information required under paragraph 4) must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI. AGS 1008 ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’, issued by the Auditing and Assurances Standards Board of the Australian Accounting Research Foundation, 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 data.
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. It is the responsibility of the board and senior management of the ADI to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.
If an ADI submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the ADI to digitally sign, authorise and encrypt the relevant data. 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 data to APRA.
If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:
(a) the Principal Executive Officer of the ADI; or
(b) the Chief Financial Officer of the ADI (whatever his or her official title may be).
(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
(b) the instructions to a form, to clarify their application to the form
without changing any substantive requirement in the form or instructions.
Transitional
Interpretation - classifications of ADIs
16.17.In this reporting standard:
Accounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the accounting standard) commencing immediately before 1 January 2005.
ADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.
ADI list means the attached ADI list.
building society means an ADI whose name appears under the heading ‘Building Societies’ in the ADI list.
consolidated ADI group means a group comprising:
(a) an ADI that is a highest parent entity; and
(b) each subsidiary (within the meaning of Accounting Standard AASB 1024) of that ADI, whether the subsidiary is locally-incorporated or not, other than a subsidiary that is excluded by the instructions attached to this standard.
credit union means an ADI whose name appears under the heading ‘Credit Unions’ in the ADI list.
foreign ADI means an ADI that is not incorporated in Australia.
highest parent entity means an ADI that satisfies all of the following conditions:
(a) it is locally-incorporated;
(b) it has at least one subsidiary (within the meaning of Accounting Standard AASB 1024); and
(c) it is not itself a subsidiary (within the meaning of Accounting Standard AASB 1024) of an ADI that is locally-incorporated.
locally-incorporated means incorporated in Australia.
locally-incorporated bank means an ADI whose name appears under the heading ‘Australian-owned Banks’ or ‘Foreign Subsidiary Banks’ in the ADI list.
special service provider means an ADI whose name appears under the heading ‘Other ADIs’ in the ADI list (other than Cairns Penny Savings & Loans Limited).
specialist credit card institution means an ADI whose name appears under the heading ‘Specialist Credit Card Institutions (SCCIs)’ in the ADI list.
17.18.If an ADI is not in the ADI list, then:
(a) if the ADI assumes or uses the word ‘bank’ in relation to its financial business, and is locally-incorporated, it is taken to be a locally-incorporated bank for the purposes of this reporting standard;
(b) if the ADI assumes or uses the expression ‘building society’ in relation to its financial business, and is locally-incorporated, it is taken to be a locally-incorporated building society for the purposes of this reporting standard;
(c) if the ADI assumes or uses the expression ‘credit union’, ‘credit society’ or ‘credit co-operative’ in relation to its financial business, and is locally-incorporated, it is taken to be a credit union for the purposes of this reporting standard;
(d) if an ADI engages in credit card issuing or credit card acquiring, or both, and does not otherwise carry on banking business within the meaning of section 5 of the Banking Act 1959, it is taken to be a specialist credit card institution for the purposes of this reporting standard.
18.19.APRA may in writing determine that an ADI is taken to be a locally-incorporated bank, locally-incorporated building society, locally-incorporated credit union, specialist credit card institution or locally-incorporated special service provider for the purposes of this reporting standard (even if, under paragraph 17 or 18, it comes within a different classification).
Interpretation - other definitions
19.20.In this reporting standard:
business days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.
Principal Executive Officer means the principal executive officer of the ADI for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the entity.
reporting period means a reporting period under paragraph 6 or, if applicable, paragraph 7.
The ADI list
Foreign-owned SCCIs
Locally Incorporated SCCIs
These companies are run by industry bodies and provide services (e.g. payments clearing) to member building societies and credit unions.
One ADI that provides general banking services which does not fall into the other categories.
Foreign-owned SCCIs
Locally Incorporated SCCIs
These companies are run by industry bodies and provide services (e.g. payments clearing) to member building societies and credit unions.
One ADI that provides general banking services which does not fall into the other categories.
Purpose
The Large Exposures form collects information on an ADI’s large exposures to an individual counterparty or a group of related counterparties at the stand-alone and consolidated banking group level.
Information reported on this form is prudentially important, as it will form part of APRA’s monitoring and analysis framework for the ADI and the industry.
Note: Do not include an ADI’s exposures to related entities (defined in accordance with Prudential Standard APS 222 Associations with Related Entities) in this form. Such exposures are to be reported in ARF 222.0 Exposures to Related Entities.
This form is subject to audit review and testing. The scope and nature of audit testing required is outlined in the applicable Audit Guidance Statement issued by the Auditing and Assurance Board of the Australian Accounting Research Foundation.
General directions and notes
The Large Exposures (Licensed ADI) form is to be completed by all ADIs at Level 1 (i.e. the stand-alone level) defined in accordance with Prudential Standard APS 110 Capital Adequacy. Foreign ADIs[1] and Specialist Credit Card Institutions (SCCIs) operating through branches in Australia are required to complete this form for the Australian branch only.
The Large Exposures (Consolidated Group) form is to be completed by all ADIs (where applicable) at Level 2 (i.e. the consolidated banking group level) defined in accordance with Prudential Standard APS 110 Capital Adequacy. Foreign ADIs and SCCIs operating through branches in Australia are not required to complete this form.
The form is to be completed as at the last day of the stated reporting quarter. Locally incorporated banks, Foreign ADIs and Special Service Providers should submit the completed form to APRA within 20 business days after the end of the relevant reporting quarter. Credit Unions, Cairns Penny Savings & Loans Limited, Building Societies and SCCIs should submit the completed form to APRA within 15 business days after the end of the relevant reporting quarter.
Banks are asked to complete the form(s) in millions of Australian dollars rounded to one decimal place, and for other non-bank ADIs (including SCCIs), in whole Australian dollars (no decimal place).
Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 1012 ‘Foreign Currency Translation’.
The general requirements of AASB 1012 for translation are:
Monetary items are defined to mean money held and assets and liabilities that are to be received or paid in fixed or determinable amounts of money.
Monetary items arising under foreign currency derivative contracts at the reporting date must be translated as follows:
Basis of preparation
For the purposes of this form, unless specifically advised in the ‘Instruction Guide for Specific Items’, ADIs are to report all exposures gross. No netting is to be recognised even if the ADI has in place netting agreements that are in the form of a legally recognised right to net or set off items of assets and liabilities in accordance with AASB 1014 ‘Set-off and Extinguishment of Debt’.
Definitions
This section provides guidance on the interpretation of certain items used in this form.
This refers to the operations of the reporting ADI on a stand-alone basis.
For large exposure purposes, this is defined in accordance with Prudential Standard APS 110 Capital Adequacy and refers to an ADI and all its subsidiaries (other than non-consolidated subsidiaries).
Consolidation at Level 2 should be conducted in accordance with Australian accounting standards. This should cover the global operations of an ADI and its subsidiary entities, including other controlled banking entities, securities entities and other financial entities (e.g. finance companies, money market corporations, stockbrokers and leasing companies), except for entities involved in the following business activities:
(a) insurance businesses (including friendly societies and health funds);
(b) acting as manager, responsible entity, approved trustee, trustee or similar role in relation to funds management or the securitisation of assets; and
(c) non-financial (commercial) operations.
An ADI’s exposures to a counterparty or a group of related counterparties at Level 1/Level 2 is the aggregate of all claims, commitments and contingent liabilities arising from on- and off-balance sheet transactions (in both the banking and trading books) with the counterparty or group of related counterparties (see paragraph 7 in Prudential Standard APS 221 Large Exposures).
Note: Where credit risk is unequivocally transferred from a counterparty to a third party by an irrevocable letter of credit or a direct guarantee, the exposure is to be recorded against the third party.
For the purposes of this form, a group of related counterparties should be deemed to exist where two or more individual counterparties are linked by:
(a) cross guarantees;
(b) common ownership or management;
(c) the ability to exercise control (defined in accordance with Australian accounting standards) over the other(s), whether direct or indirect;
(d) financial interdependency such that the financial soundness of any of them may affect the financial soundness of the other(s); or
(e) other connections or relationships which, according to an ADI’s assessment, identify the counterparties as constituting a single risk.
Note: Family members are not to be treated as connected where they have independent retail relationships with the ADI at Level 1/Level 2 (although the ADI can choose to treat such exposures as connected should it consider appropriate to do so).
This refers to items of assets that are recognised or recorded on the statement of financial position of the ADI at Level 1/Level 2.
This refers to items of assets or liabilities that are not recognised or recorded on the statement of financial position of the ADI at Level 1/Level 2 because they do not satisfy the asset or liability accounting recognition requirements e.g. contingent liabilities.
This refers to deposits; other borrowings; bonds, notes and long-term borrowings; and loan capital as per ARF 320.0 Statement of Financial Position (Domestic Books) or ARF 323.0 Statement of Financial Position (Licensed ADI), as appropriate. Exclude tradeable security issues.
Specific instructions
The Large Exposures form for the Licensed ADI has the following reporting components:
Section A is to be completed by all locally incorporated banks. Report in this section on a net basis (explained in detail below) the bank’s 10 largest exposures to a counterparty or a group of related counterparties unrelated to the bank at Level 1 and all those exposures that exceed or equal to 10% of the bank’s Level 1 capital base (as reported in ARF 110.0 Capital Adequacy (Licensed ADI) for the same quarter)[2].
Section B is to be completed by all non-bank ADIs (including locally incorporated SCCIs). Report in this section on a net basis (explained in detail below) the ADI’s 10 largest exposures to a counterparty or a group of related counterparties unrelated to the ADI at Level 1 and all those exposures that exceed or equal to 5% of the ADI’s Level 1 capital base (as reported in ARF 110.0 Capital Adequacy (Licensed ADI) for the same quarter)[3].
Section C is to be completed by all foreign ADIs, and SCCIs that operate as branches in Australia. Report in this section on a net basis (explained in detail below) the 20 largest exposures of the Australian branch to a counterparty or a group of related counterparties unrelated to the foreign ADI or SCCI[4].
Section D is to be completed by ADIs that are not subject to scenario analysis under Prudential Standard APS 210 Liquidity on a stand-alone basis. Report in this section all liability exposures to a counterparty or a group of related counterparties that exceed 5% of the ADI’s total liabilities (as reported in ARF 320.0 Statement of Financial Position (Domestic Books) or ARF 323.0 Statement of Financial Position (Licensed ADI) for the same quarter as appropriate).
These reporting components are individually explained in detail below.
The Large Exposures form for the Consolidated Group has the following reporting components:
Section A is to be completed by all locally incorporated banks. Report in this section on a net basis (explained in detail below) the bank’s 10 largest exposures to a counterparty or a group of related counterparties unrelated to the bank at Level 2 and all those exposures that exceed or equal to 10% of the bank’s Level 2 capital base (as reported in ARF 110.0 Capital Adequacy (Consolidated Group) for the same quarter).
Section B is to be completed by all non-bank ADIs (including locally incorporated SCCIs). Report in this section on a net basis (explained in detail below) the ADI’s 10 largest exposures to a counterparty or a group of related counterparties unrelated to the ADI at Level 2 and all those exposures that exceed or equal to 5% of the ADI’s Level 2 capital base (as reported in ARF 110.0 Capital Adequacy (Consolidated Group) for the same quarter).
These reporting components are individually explained in detail below.
Section A: Large exposures for locally incorporated banks
Section B: Large exposures for non-bank ADIs
Instructions for Section A and Section B for both the Large Exposures (Licensed ADI) and the Large Exposures (Consolidated Group) forms are set out below.
Column 1. Counterparty
Report in column 1 the names of the relevant individual counterparties to which the ADI has exposures to at Level 1/Level 2 (as appropriate). In the case of exposures to a group of related counterparties, the ADI’s aggregate exposure to the relevant group should be reported as one exposure and shown in the name of the principal counterparty.
Column 2. Category
Report in column 2 the category of the counterparty reported in column 1 using the following abbreviations:
This includes Australian governments (Commonwealth, State, local) and foreign governments (central, state, local), Australian and foreign central banks, and other international organisations.
This includes Australian ADIs and foreign equivalents (and their subsidiaries).
Note:
(1) Bills accepted by another ADI or foreign equivalent should be reported as an exposure to ADI.
(2) For foreign-owned locally incorporated ADIs (including SCCIs), report exposures to foreign (bank) parent(s) (including Australian and overseas branches), to the foreign parent’s overseas based subsidiaries and to their directly owned non-ADI entities operating in Australia in the memorandum items.
This includes all other counterparties not classified above.
Column 3. On-balance sheet exposures
This includes all loans and advances, holding of debt and equity securities, and all other claims on the counterparty or group of related counterparties reported in column 1. Any accrued income associated with the exposure should also be included (e.g. interest, dividends).
Report in column 3 the book value of all on-balance sheet exposures to the counterparty or group of related counterparties at Level 1/Level 2 (as appropriate) on a net basis. Net basis means net of exposures excluded under paragraphs 7(b)(i)-(vi) in Prudential Standard APS 221 Large Exposures, specifically:
Column 3.1. Loans (for Section B only)
Report in column 3.1 the book value of all loans and advances to the counterparty or group of related counterparties at Level 1/Level 2 (as appropriate) on a net basis. Include any accrued interest associated with the exposure.
Column 3.2. Other (for Section B only)
Report in column 3.2 the book value of all other on-balance sheet exposures (e.g. investment and liquidity exposures) to the counterparty or group of related counterparties at Level 1/Level 2 (as appropriate) on a net basis. Any accrued income associated with the exposure should also be included (e.g. interest, dividends).
Column 4. Off-balance sheet exposures
Column 4.1. Non-market related
<table cellspacing="0" cellpadding="0" style="margin-left:18.65pt; border:0.75pt solid #000000; border-collapse:collapse"><tbody><tr><td colspan="2" style="width:357.75pt; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top; background-color:#c0c0c0"><p style="text-align:justify"><span style="font-weight:bold">Credit default swap</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection seller</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to the reference entity</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection buyer</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to the protection seller</span></p></td></tr><tr><td colspan="2" style="width:357.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top; background-color:#c0c0c0"><p style="text-align:justify"><span style="font-weight:bold">Total-rate-of-return swap</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection seller</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to the reference entity</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection buyer</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to the protection seller</span></p></td></tr><tr><td colspan="2" style="width:357.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top; background-color:#c0c0c0"><p style="text-align:justify"><span style="font-weight:bold">Credit-linked note</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection seller</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to the reference entity and the protection buyer</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection buyer</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to collateral (typically zero weighted)</span></p></td></tr><tr><td colspan="2" style="width:357.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top; background-color:#c0c0c0"><p style="text-align:justify"><span style="font-weight:bold">First-to-default baskets</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection seller</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposures to all reference entities</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection buyer</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to protection seller for one reference entity and exposures to all other entities</span></p></td></tr></tbody></table>
Column 4.2. Market related
Include all exposures arising from off-balance sheet market related contracts with the counterparty or group of related counterparties reported in column 1 at Level 1/Level 2 as appropriate (see Guidance Note AGN 112.2 Risk-Weighted Off-Balance Sheet Credit Exposures for examples of these contracts).
Report in column 4.2 the credit equivalent amounts of all market related contracts on a net basis (i.e. net of exposures excluded under paragraphs 7(b)(i)-(vi) in Prudential Standard APS 221 Large Exposures as detailed in point 3 above). The credit equivalent amounts of these contracts are to be calculated in accordance with Guidance Note AGN 112.2 Risk-Weighted Off-Balance Sheet Credit Exposures or Guidance Note AGN 112.3 Netting where netting applies. Netting by novation and close-out netting are permissible for market related contracts provided all the requirements set out in Guidance Note AGN 112.3 Netting for bilateral netting are met. Multilateral netting and netting of exposures against offsetting positions held by a group of related counterparties are not recognised.
Column 5. Total exposures
Column 5.1. Amount
For Section A, this represents the total of column numbers 3, 4.1 and 4.2. For Section B, this represents the total of column numbers 3.1, 3.2, 4.1 and 4.2.
Column 5.2. As % of capital base
This represents the value reported for column 5.1 divided by the ADI’s capital base as reported in ‘Memorandum items’ (2.1).
2.1. Capital base of licensed ADI/consolidated group (where applicable)
Report the ADI’s capital base at Level 1 and Level 2 as appropriate for the reporting quarter (as shown in ARF 110.0 Capital Adequacy (Licensed ADI) and ARF 110.0 Capital Adequacy (Consolidated Group) respectively for the same reporting quarter).
2.2. Aggregate exposure to non-deposit-taking subsidiaries of unrelated ADIs (including foreign equivalents)
For any reported exposures to an unrelated ADI (including foreign equivalent) and its subsidiaries at Level 1 and Level 2 listed in column 1, report the ADI’s aggregate exposure to the unrelated ADI’s non-deposit-taking subsidiaries, if any, in the memorandum item. For example, if the ADI has reported aggregate exposure to an unrelated ADI and its subsidiaries of $10 million, of which $2 million is to the unrelated ADI’s non-deposit-taking subsidiaries, report the $2 million exposure in the memorandum item for additional information purposes.
2.3. Aggregate exposure to foreign parents and their subsidiaries
Report the aggregate exposure to foreign (bank) parent(s) (including Australian and overseas branches), the foreign parent’s overseas based subsidiaries and their directly owned non-ADI entities operating in Australia [5].
2.4. 5 largest merchants by sales volume (for Section B only)
For SCCIs that undertake credit card acquiring activities, report the 5 largest merchant customers in terms of aggregate transaction dollar value acquired by the reporting institution over the reporting quarter.
Section C: Large exposures for foreign ADIs/SCCI branches
Column 1. Counterparty
Report in column 1 the names of the relevant individual counterparties to which the Australian branch has exposures to. In the case of exposures to a group of related counterparties, the branch’s aggregate exposure to the relevant group should be reported as one exposure and shown in the name of the principal counterparty.
Column 2. Category
Report in column 2 the category of the counterparty reported in column 1 using the following abbreviations:
This includes Australian governments (Commonwealth, State, local) and foreign governments (central, state, local), Australian and foreign central banks, and other international organisations.
This includes Australian ADIs and foreign equivalents (and their subsidiaries).
Note: Bills accepted by another ADI or foreign equivalent should be reported as an exposure to ADI.
This includes all other counterparties not classified above.
Column 3. On-balance sheet exposures
This includes all loans and advances, holding of debt and equity securities, and all other claims on the counterparty or group of related counterparties reported in column 1. Any accrued income associated with the exposure should also be included (e.g. interest, dividends).
Report in column 3 the book value of all on-balance sheet exposures to the counterparty or group of related counterparties on a net basis. Net basis means net of the following exposures:
Column 4. Off-balance sheet exposures
Column 4.1. Non-market-related
The treatment of large exposures where protection is purchased requires some additional clarification in a couple of instances. Where an ADI has purchased protection using a credit derivative and the residual maturity of the credit derivative contract is less than the maturity of the underlying asset, the exposure is to the protection seller for the term of the credit derivative hedge and to the underlying exposure thereafter. Amongst other requirements, the credit derivative would need to have a residual maturity of at least one year to be regarded by APRA as a sufficient hedge. In the case of currency mismatches, that is, where the underlying exposure and the credit derivative hedge are denominated in different currencies, the proportion of the underlying exposure transferred to the protection seller will be determined by the current market exchange rate.
The following table summarises the treatment of credit derivatives for large exposures reporting purposes.
<table cellspacing="0" cellpadding="0" style="margin-left:18.65pt; border:0.75pt solid #000000; border-collapse:collapse"><tbody><tr><td colspan="2" style="width:357.75pt; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top; background-color:#c0c0c0"><p style="text-align:justify"><span style="font-weight:bold">Credit default swap</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection seller</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to the reference entity</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection buyer</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to the protection seller</span></p></td></tr><tr><td colspan="2" style="width:357.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top; background-color:#c0c0c0"><p style="text-align:justify"><span style="font-weight:bold">Total-rate-of-return swap</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection seller</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to the reference entity</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection buyer</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to the protection seller</span></p></td></tr><tr><td colspan="2" style="width:357.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top; background-color:#c0c0c0"><p style="text-align:justify"><span style="font-weight:bold">Credit-linked note</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection seller</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to the reference entity and the protection buyer</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection buyer</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to collateral (typically zero weighted)</span></p></td></tr><tr><td colspan="2" style="width:357.75pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top; background-color:#c0c0c0"><p style="text-align:justify"><span style="font-weight:bold">First-to-default baskets</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection seller</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposures to all reference entities</span></p></td></tr><tr><td style="width:130.95pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Protection buyer</span></p></td><td style="width:216pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:justify"><span>Exposure to protection seller for one reference entity and exposures to all other entities</span></p></td></tr></tbody></table>
Column 4.2. Market-related
Include all exposures arising from off-balance sheet market related contracts with the counterparty or group of related counterparties reported in column 1 (see Guidance Note AGN 112.2 Risk-Weighted Off-Balance Sheet Credit Exposures for examples of these contracts).
Report in column 4.2 the credit equivalent amounts of all market related contracts on a net basis (i.e. net of exposures detailed in point 3 above). The credit equivalent amounts of these contracts are to be calculated in accordance with Guidance Note AGN 112.2 Risk-Weighted Off-Balance Sheet Credit Exposures or Guidance Note AGN 112.3 Netting where netting applies. Netting by novation and close-out netting are permissible for market related contracts provided all the requirements set out in Guidance Note AGN 112.3 Netting for bilateral netting are met. Multilateral netting and netting of exposures against offsetting positions held by a group of related counterparties are not recognised.
Column 5. Total exposures
This represents the total of column numbers 3, 4.1 and 4.2.
2.1. 5 largest merchants by sales volume
For SCCI branches that undertake credit card acquiring activities, report the 5 largest merchant customers in terms of aggregate transaction dollar value acquired by the reporting institution over the reporting quarter.
Section D: Large liability exposures
Column 1. Counterparty
Report in column 1 the names of the relevant individual counterparties or group of related counterparties to which the ADI has liability exposure concentration. In the case of exposures to a group of related counterparties, the ADI’s aggregate exposure to the relevant group should be reported as one exposure and shown in the name of the principal counterparty.
Column 2. Deposits
Include total deposits held for the counterparty or group of related counterparties reported in column 1. Deposits are defined as per ARF 320.0 Statement of Financial Position (Domestic Books) or ARF 323.0 Statement of Financial Position (Licensed ADI) as appropriate. Exclude tradeable security issues.
Column 3. Other borrowings, bonds, notes and long-term borrowings, and loan capital
Include total “Other borrowings”, “Bonds, notes and long-term borrowings”, and “Loan capital” (defined as per ARF 320.0 Statement of Financial Position (Domestic Books) or ARF 323.0 Statement of Financial Position (Licensed ADI) as appropriate) due to the counterparty or group of related counterparties reported in column 1. Exclude tradeable security issues.
Note on References to Accounting Standards
This Note is about references in these instructions to an accounting standard or accounting standards, e.g. where the instructions say that something must be done in accordance with a particular AASB or international accounting standard, or must be done in accordance with the accounting standards (however described) generally.
Where you see such a reference, you must read it as meaning the version of the accounting standard, or versions of the accounting standards, applying to reporting periods (within the meaning of the accounting standards) beginning immediately before 1 January 2005.
Accordingly, the new AASB standards for 2005 are not to be applied.
Similarly, a reference to principles or conventions (however described) governing an accounting procedure or treatment shall be taken to refer to principles or conventions applicable in relation to reporting periods (within the meaning of the accounting standards) that began immediately before 1 January 2005.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires all authorised deposit-taking institutions (ADIs), including foreign ADIs operating in Australia through branch operations, to report to APRA, generally on a quarterly basis, in relation to their large exposures.
This reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with:
An ADI must provide APRA with the information required by the version of Form ARF 221.0 designated for a ‘Licensed ADI’ for each reporting period.
An ADI that is the highest parent entity in relation to a consolidated ADI group must provide APRA with the information required by the version of Form ARF 221.0 designated for a ‘Consolidated Group’ for each reporting period.
(a) in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or
(b) manually completed on paper, which must be faxed or mailed to APRA’s head office.
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Reporting periods and due dates
Subject to paragraph 7, an ADI must provide the information required by this reporting standard for each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.
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:
(a) the particular circumstances of the ADI;
(b) the extent to which the information is required for the purposes of the prudential supervision of the ADI; and
(c) the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics.
(a) in the case of the information required by paragraphs 3 and 4 from a locally-incorporated bank, locally-incorporated special service provider or foreign ADI (other than a specialist credit card institution) – 20 business days after the end of the reporting period to which the information relates; and
(b) in the case of the information required by paragraphs 3 and 4 from a locally- incorporated credit union, locally-incorporated building society, specialist credit card institution (whether locally-incorporated or not) or Cairns Penny Savings & Loans Limited – 15 business days after the end of the reporting period to which the information relates.
The information provided by an ADI under this reporting standard (except for the information required under paragraph 4) must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI. AGS 1008 ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’, issued by the Auditing and Assurances Standards Board of the Australian Accounting Research Foundation, 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 data.
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. It is the responsibility of the board and senior management of the ADI to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.
If an ADI submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the ADI to digitally sign, authorise and encrypt the relevant data. 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 data to APRA.
If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:
(a) the Principal Executive Officer of the ADI; or
(b) the Chief Financial Officer of the ADI (whatever his or her official title may be).
(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
(b) the instructions to a form, to clarify their application to the form
without changing any substantive requirement in the form or instructions.
Transitional
Interpretation - classifications of ADIs
16.17.In this reporting standard:
Accounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the accounting standard) commencing immediately before 1 January 2005.
ADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.
ADI list means the attached ADI list.
building society means an ADI whose name appears under the heading ‘Building Societies’ in the ADI list.
consolidated ADI group means a group comprising:
(a) an ADI that is a highest parent entity; and
(b) each subsidiary (within the meaning of Accounting Standard AASB 1024) of that ADI, whether the subsidiary is locally-incorporated or not, other than a subsidiary that is excluded by the instructions attached to this standard.
credit union means an ADI whose name appears under the heading ‘Credit Unions’ in the ADI list.
foreign ADI means an ADI that is not incorporated in Australia.
highest parent entity means an ADI that satisfies all of the following conditions:
(a) it is locally-incorporated;
(b) it has at least one subsidiary (within the meaning of Accounting Standard AASB 1024); and
(c) it is not itself a subsidiary (within the meaning of Accounting Standard AASB 1024) of an ADI that is locally-incorporated.
locally-incorporated means incorporated in Australia.
locally-incorporated bank means an ADI whose name appears under the heading ‘Australian-owned Banks’ or ‘Foreign Subsidiary Banks’ in the ADI list.
special service provider means an ADI whose name appears under the heading ‘Other ADIs’ in the ADI list (other than Cairns Penny Savings & Loans Limited).
specialist credit card institution means an ADI whose name appears under the heading ‘Specialist Credit Card Institutions (SCCIs)’ in the ADI list.
17.18.If an ADI is not in the ADI list, then:
(a) if the ADI assumes or uses the word ‘bank’ in relation to its financial business, and is locally-incorporated, it is taken to be a locally-incorporated bank for the purposes of this reporting standard;
(b) if the ADI assumes or uses the expression ‘building society’ in relation to its financial business, and is locally-incorporated, it is taken to be a locally-incorporated building society for the purposes of this reporting standard;
(c) if the ADI assumes or uses the expression ‘credit union’, ‘credit society’ or ‘credit co-operative’ in relation to its financial business, and is locally-incorporated, it is taken to be a credit union for the purposes of this reporting standard;
(d) if an ADI engages in credit card issuing or credit card acquiring, or both, and does not otherwise carry on banking business within the meaning of section 5 of the Banking Act 1959, it is taken to be a specialist credit card institution for the purposes of this reporting standard.
18.19.APRA may in writing determine that an ADI is taken to be a locally-incorporated bank, locally-incorporated building society, locally-incorporated credit union, specialist credit card institution or locally-incorporated special service provider for the purposes of this reporting standard (even if, under paragraph 17 or 18, it comes within a different classification).
Interpretation - other definitions
19.20.In this reporting standard:
business days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.
Principal Executive Officer means the principal executive officer of the ADI for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the entity.
reporting period means a reporting period under paragraph 6 or, if applicable, paragraph 7.
The ADI list
This is an opening excerpt, not the complete document.