Application to an applicant IRB ADI

In the following cases an ADI (other than a branch of a foreign bank) must meet reporting requirements applicable to both an IRB ADI and a Standardised ADI:

(a) where the ADI is operating under the standardised approach to credit risk under APS 112, but has applied for IRB approval under APS 113; and

(b) where the ADI has received IRB approval under APS 113 in respect of most (but not all) of its operations, and has approval for partial use of the standardised approach under APS 112 for the remainder of its operations.

Such an ADI must report under ARF 112.2A (the form) as follows:

<table cellspacing="0" cellpadding="0" style="width:461.2pt; margin-bottom:0pt; border:0.75pt solid #000000; border-collapse:collapse"><tbody><tr><td style="width:144.9pt; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top; background-color:#d9d9d9"><p class="BodyText1" style="margin-left:0pt; text-indent:0pt; text-align:left"><span style="font-weight:bold">Description of ADI</span></p></td><td style="width:293.95pt; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top; background-color:#d9d9d9"><p class="BodyText1" style="margin-left:0pt; text-indent:0pt; text-align:left"><span style="font-weight:bold">Reporting requirement</span></p></td></tr><tr><td style="width:144.9pt; 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 style="font-weight:bold; font-style:italic">ADI</span><span> is operating under APS 112 standardised approach, but has applied to adopt IRB approach for </span><span style="text-decoration:underline">all</span><span> its operations</span></p></td><td style="width:293.95pt; 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 class="BodyText1" style="margin-left:0pt; text-indent:0pt"><span>Report under the form (for purposes of calculating credit risk component of regulatory capital for all of its operations)</span></p></td></tr><tr><td rowspan="2" style="width:144.9pt; 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 class="BodyText1" style="margin-left:0pt; text-indent:0pt"><span style="font-weight:bold; font-style:italic">ADI</span><span> is operating under APS 112 standardised approach, but has applied to adopt IRB approach for </span><span style="text-decoration:underline">most (but not all)</span><span> of its operations (or </span><span style="font-weight:bold; font-style:italic">APRA</span><span> has indicated that it does not propose to grant IRB approval in respect of all of the </span><span style="font-weight:bold; font-style:italic">ADI’s</span><span> operations)</span></p></td><td style="width:293.95pt; 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>Report under the form (for purposes of calculating credit risk component of regulatory capital for all of its operations)</span></p></td></tr><tr><td style="width:293.95pt; 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>Separately report under the form in respect of assets that will remain under the standardised approach (i.e. partial use) after IRB approval given (for purposes of assessing prospective credit risk component of regulatory capital calculation after IRB approval (i.e. ‘parallel run’ of data)</span></p></td></tr><tr><td style="width:144.9pt; 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 style="font-weight:bold; font-style:italic">ADI</span><span> has IRB approval, but some operations remain under the standardised approach</span></p></td><td style="width:293.95pt; 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>Report under the form in respect of operations that will remain under standardised approach (for purposes of calculating partial use credit risk component of regulatory capital)</span></p></td></tr></tbody></table>