Financial Sector (Collection of Data) (reporting standard) determination No. 18 of 2008 - ARS 210.0 - Statement of High Quality Liquid Assets Calculation
(c) Other ADIs(c) Other ADIs
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settlement balances – Austraclear and RITS balances with non bank ADIs; and
amounts owing and in the course of collection from other ADIs in relation to the payments system.
1.4 Total eligible cash and liquid assets
Represents the sum of items 1.1 – 1.3.
Deposits on a call basis [APS 210 paragraph 12(d)]
2.1 Deposits on a call basis [APS 210 paragraph 12(d)]
(a) Banks
Include:
the amount of deposits/money market loans placed with banks on a call, 11am or 24 hours basis.
To qualify as “high quality liquid assets” in accordance with APS 210 the funds must be free from encumbrances.
(b) Other ADIs
Include:
the amount of deposits/money market loans placed with other ADIs on a call, 11am or 24 hours basis.
To qualify as “high quality liquid assets” in accordance with APS 210 the funds must be free from encumbrances.
2.2 Total eligible deposits/funds invested on a call basis
Represents the sum of items disclosed under point 2.1.
Securities eligible for re-purchase with the RBA [APS 210 paragraph 12(b)]
Eligible collateral for RBA market operations
The RBA announced on 7 June (Media Release 2001-12) the decision to expand the range of securities it will accept as collateral in its domestic market operations, including Australian dollar securities from a broader range of supranational institutions.
A full list of the supranational organisations whose securities are currently accepted by the RBA is provided below. A detailed list of the securities accepted is published in the electronic media (Reuters RBA35, Dow Jones 1595 and Bloomberg RBA14) and on the RBA’s website, and any future additions to the list of eligible securities will be notified on those pages.
The RBA will accept:
securities issued by the Commonwealth Government;
securities issued in Australia by the central borrowing authorities of State and Territory governments;
Australian dollar denominated securities issued by the central borrowing authorities of State and Territory governments, in euro markets and lodged in Austraclear as Euro entitlements;
Australian dollar securities of the European Investment Bank currently lodged in Austraclear to the list of eligible securities; and
Section (c) Other ADIs - Financial Sector (Collection of Data) (reporting standard) determination No. 18 of 2008 - ARS 210.0 - Statement of High Quality Liquid Assets Calculation - (c) Other ADIs | Zoe
Australian dollar securities issued by some supranational organisations. Decisions will be made on a case-by-case basis, but as a minimum the organisation must have a AAA credit rating.
Supranational organisations whose securities the RBA will accept as repo collateral:
Asian Development Bank;
European Bank for Reconstruction and Development;
European Investment Bank;
Inter-American Development Bank;
International Bank for Reconstruction and Development; and
International Finance Corporation.
Securities that are already subject to repurchase or resale agreements should not be included in this section (i.e. Securities purchased under agreements to resell and Securities sold under agreements to repurchase).
Bank bills and CD's issued by ADI's with no less than investment grade rating [APS 210 (Para 12 (c)]
Bank bills and CD's eligible for inclusion as HQLA are securities issued by an ADI counterparties that are rated at least "investment grade" by an external credit assessment institution (i.e. have a credit rating grade of 1, 2 or 3) within the meaning of APS 112 for the purpose of risk weightings on counterparties and exposures. Refer to APS 112, and paragraph 19 of Prudential Practice Guide APG 112 – Standardised Approach to Credit Risk for further information. Do not include Bank Bonds, Floating Rate Notes or Transferable Certificates of Deposit.
To qualify as “high quality liquid assets” in accordance with APS 210 the securities must also be free from encumbrances.
Other eligible deposits not on a call basis [APS 210 paragraph 12(d)]
Deposits invested on other than a call basis (i.e. term deposits) will qualify for High Quality Liquid Assets (HQLA) only if the deposits are free from encumbrances and the ADI has written confirmation that the deposit is convertible into cash within a maximum of two business days. Where break costs will be applied to redeem term deposits within 2 business days, the deposits must be shown net of the break costs.
Other securities approved by APRA [APS 210 Para 12(e)] - Please specify:
Other securities must have prior approval from APRA to be included in HQLA. All investments included in HQLA must be unencumbered, except where approved for a prudential purpose by APRA.
Total HQLA
Represents the total of the following items 1.4; 2.2; 3.5; 4.3; 5.2; 6.3.
Less: HQLA placements by other ADI's [APS 210 paragraph 12(d)]
Note: In the calculation of HQLA as required by APS 210, HQLA Deposits received from other ADI's must be netted against HQLA where such deposits are included in HQLA ratios being reported to APRA. Netting extends across ADI's and is not on a bilateral basis only.
8.1 HQLA deposits on a call basis placed with the reporting ADI by other ADI's [APS 210 paragraph 12(d)]. Disclose this in relation to the following:
(a) Banks
Include:
the amount of deposits/money market loans placed with the reporting ADI by banks on a call, 11am or 24 hours basis that are withdrawable/convertible into cash within 2 business days.
(b) Other ADIs
Include:
the amount of deposits/money market loans placed with the reporting ADI by other ADIs (other than banks) on a call, 11am or 24 hours basis that are withdrawable/convertible into cash within 2 business days.
8.2 Total deposits/funds placed by other ADIs on a call basis.
Represents the sum of items disclosed under point 8.1(a) and 8.1(b).
8.3 Other deposits not on a call basis placed with the reporting ADI by other ADI's [APS 210 paragraph 12(d)]
(a) Banks
Include:
the amount of deposits placed with the reporting ADI by banks on a basis other than at call, 11am or 24 hours, that are withdrawable/convertible into cash within 2 business days.
(b) Other ADIs
Include:
the amount of deposits placed with the reporting ADI by other ADIs (other than banks) on a basis other than at call, 11am or 24 hours basis that are withdrawable/convertible into cash within 2 business days.
8.4 Total other deposits placed by other ADIs not on a call basis
Represents the sum of items disclosed under point 8.3(a) and 8.3(b).
8.5 Total placements by other ADIs (i.e. 8.2 + 8.4)
Represents the sum of items disclosed under point 8.2 and 8.4.
8.6 HQLA placements by other ADIs in excess of HQLA deposits of the reporting ADI
This item represents the value of item disclosed under point 8.5, less the sum of items 2.2 + 5.2. Note, this item can not be less than zero. Accordingly if the result is less than zero, zero will be displayed.
Total adjusted HQLA
Represents items 7, minus item 8.5 plus item 8.6.
Note: Item 8.6 is added back to item 7 (Total HQLA) as ‘Total placements by other ADIs’ is only deducted from the reporting ADIs HQLA, up to the level of reporting ADIs HQLA with other ADIs.
Calculation of liability base
Liabilities for the purpose of APS 210 is defined as Total Liabilities plus the value of ‘Total Shareholders Equity’, plus irrevocable commitments less eligible capital base defined in accordance with Prudential Standard APS 111 Capital Adequacy: Measurement of Capital. The following items facilitate the calculation of adjusted total liabilities base for the purpose of calculating HQLA.
Total liabilities (per ARF 323.0)
Disclose the figure for “Total Liabilities” per ARF 323.0.
Plus: Total shareholders’ equity (per the Statement of Financial Position (Licensed ADI))
Disclose the figure for ‘Total Shareholders’ Equity’ per ARF 323.0.
Less: Capital base (per ARF 110.0 Capital Adequacy)
Disclose the figure for the ‘Total Capital Base’ per ARF 110.0 Capital Adequacy
Less: HQLA placements by other ADIs (i.e. 8.5 - 8.6)
This amount must not be negative. i.e. if the value is less than zero, then zero is to be disclosed in this field.
This amount needs to be deducted from the Liability base of the reporting ADIs, as it this value has been deducted from the reporting ADIs HQLA.
Liability base
Represents items 11 plus 12 less items 13 and 14.
Add: Off balance sheet irrevocable commitments
For the interpretation of the items listed refer to the form and instructions for form ARF 112.2.
Note: Undrawn formal standby facilities and credit lines in this contexts, refers to standbys which the ADI has committed to provide to it’s customers and APRA's approved industry support arrangements only.
Do not include standbys which the reporting ADI has in place to support its operations.
Note: For the off-balance sheet category titled – “Balances available for redraw under redraw facilities of term loans”, only include those balances where the ADI has irrevocably committed to providing the redraw to the customer.
Total off balance sheet irrevocable commitments
Represents the sum of items disclosed in item 16.
Adjusted liability base
Represents the liability base per item 15 increased for the total off-balance sheet irrevocable commitments disclosed in item 17.
HQLA ratio
Represents item 9 divided by item 18. Per APS 210 ADI’s must maintain a minimum HQLA at all times.
ADI's minimum targeted HQLA ratio per Liquidity Management Strategy
Report the ADI’s minimum targeted HQLA ratio as contained in its Liquidity Management Strategy.
Lowest HQLA ratio during reporting period
Report the ADI’s lowest HQLA ratio maintained during the reporting period.