Part Capital Adequacy: Internal Ratings-based - Financial Sector (Collection of Data) (reporting standard) determination No. 13 of 2024 - Capital Adequacy: Internal Ratings-based Approach to Credit Risk | Zoe
Financial Sector (Collection of Data) (reporting standard) determination No. 13 of 2024
Capital Adequacy: Internal Ratings-basedCapital Adequacy: Internal Ratings-based Approach to Credit Risk
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Capital Adequacy: Internal Ratings-based Approach to Credit Risk
Objective of this Reporting Standard
This Reporting Standard outlines the requirements for the provision of information to APRA in relation to an authorised deposit-taking institution’s exposures that are subject to calculations using the internal ratings-based approach to credit risk.
It includes associated instructions (all of which are attached and form part of this Reporting Standard) and should be read in conjunction with Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk.
Authority
This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
The information reported to APRA under this Reporting Standard is used by APRA for the purpose of prudential supervision including assessing compliance with capital adequacy standards. It may also be used by the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS).
Application and commencement
This Reporting Standard applies to an authorised deposit-taking institution (ADI) that is applying the internal ratings-based approach to credit risk to all or part of its exposures for capital adequacy purposes (refer to Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112) or Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk (APS 113), as appropriate).
This Reporting Standard may also apply to the non-operating holding company (NOHC) of an ADI (refer to paragraph 7).
This Reporting Standard applies for reporting periods ending on or after 30 September 2024.
Information required
An ADI to which this Reporting Standard applies must provide APRA with the information required by this Reporting Standard designated for an ADI at Level 1 in respect of each reporting period.
If an ADI to which this Reporting Standard applies is part of a Level 2 group, the ADI must also provide APRA with the information required by this Reporting Standard designated for an ADI at Level 2 for each reporting period, unless the ADI is a subsidiary of an authorised NOHC. If the ADI is a subsidiary of an authorised NOHC, the ADI’s immediate parent NOHC must provide APRA with the information required by that form for each reporting period. In doing so, the immediate parent NOHC must comply with this Reporting Standard (other than paragraphs 6 and 13) as if it were the relevant ADI.
Method of submission
The information required by this Reporting Standard must be given to APRA:
in electronic format using an electronic method available on APRA’s website; or
by a method notified by APRA prior to submission.
Reporting periods and due dates
Subject to paragraph 10, an ADI to which this Reporting Standard applies 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:
the particular circumstances of the ADI;
the extent to which the information is required for the purposes of the prudential supervision of the ADI; and
the requirements of the RBA or the ABS.
The information required by this Reporting Standard must be provided to APRA within 35 calendar days after the end of the reporting period to which this information relates.
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.
Note: 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.
Quality control
All information provided by an ADI under this Reporting Standard (except for the information required under paragraph 7) must be the product of systems, processes and controls that have been reviewed and tested by the external auditor of the ADI as set out in Prudential Standard APS 310 Audit and Related Matters. Relevant standards and guidance statements issued by the Auditing and Assurance Standards Board provide information 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 required by the external auditor to enable the external auditor to form an opinion on the accuracy and reliability of the information provided by an ADI under this Reporting Standard.
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.
Authorisation
When an officer or agent of an ADI provides the information required by this Reporting Standard using an electronic format, the officer or agent must digitally sign the relevant information using a digital certificate acceptable to APRA.
Variations
APRA may, by written notice to the ADI, vary the reporting requirements of this Reporting Standard in relation to that ADI.
Transition
An ADI must report under the old reporting standard in respect of a transitional reporting period. For these purposes:
old reporting standard means the reporting standard revoked by the determination that makes this Reporting Standard (being the reporting standard that this Reporting Standard replaces); and
transitional reporting period means a reporting period within the meaning given in the old reporting standard:
that ended before 30 September 2024; and
in relation to which the ADI would have been required, if the old reporting standard had not been revoked, to report by a date on or after the date of revocation of the old reporting standard.
Note: 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 any overdue reporting documents in accordance with the old reporting standard.
Interpretation
In this Reporting Standard the following definitions are applicable:
AASB has the meaning in section 9 of the Corporations Act 2001.
ADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.
APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.
APS 001 means Prudential Standard APS 001 Definitions or, if that standard is revoked, Prudential Standard CPS 001 Defined terms as it applies to an ADI or authorised NOHC.
authorised NOHC has the meaning given in the Banking Act 1959.
business days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.
due date means the relevant due date under paragraph 11 or, if applicable, the date on a notice of extension given under paragraph 12.
foreign ADI has the meaning given in section 5 of the Banking Act 1959.
immediate parent NOHC means an authorised NOHC, or a subsidiary of an authorised NOHC, that is an immediate parent NOHC.
IRB approach refers to the internal ratings-based approach to credit risk, as set out in APS 113.
Level 1 has the meaning given to that expression in APS 001.
Level 2 has the meaning given to that expression in APS 001.
locally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or territory law.
reporting period means a period mentioned in paragraph 9 or, if applicable, paragraph 10.
Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing and Assurance Standard is a reference to the instrument as in force from time to time.