Financial Sector (Collection of Data) (reporting standard) determination No. 3 of 2017

This Determination (Reporting Standard ARS 731.3A) prescribes a mandatory data collection regime administered by APRA that requires Australian-owned authorised deposit‑taking institutions (ADIs) that meet the “Australian‑owned bank” classification to supply detailed consolidated international banking statistics on a quarterly basis (see paragraphs 1-6, 8-9). Mechanically, it revokes the prior reporting standard (No. 28 of 2008) and replaces that instrument with ARS 731.3A, which commences on 1 October 2017 (front matter; paragraph 4; paragraph 17 for transitional rules). The legal basis is paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001, as exercised by an APRA delegate (instrument header).

In functional terms, the Determination (a) defines the population required to report (only Australian‑owned banks, not foreign subsidiaries, branches of foreign banks, building societies, credit unions or other ADIs , paragraph 3 and the definitions at paragraph 18), (b) sets the electronic submission method and authentication requirements (submission via APRA’s ‘Direct to APRA’ application or another APRA‑notified method; digital signing/encryption and digital certificates to be issued by APRA , paragraph 7 and 14), (c) fixes reporting periodicity and due dates (quarterly for the four standard quarter‑ends, with data due within 28 calendar days , paragraphs 8-9), and (d) prescribes the content, form and technical instructions for the return (Reporting Form ARF 731.3A and its instructions, covering immediate and ultimate risk exposures, risk transfers, derivatives, guarantees and credit commitments). The return must be completed on a Level 2 consolidated basis unless a Level 2 group does not exist or unless the ADI is a subsidiary of an authorised NOHC in which case the immediate parent NOHC provides the Level 2 report (paragraph 6 and definitions in paragraph 18).

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Reporting Standard ARS 731.3A International Banking Statistics – Immediate and Ultimate Risk Exposures – Domestic Entity

Financial Sector (Collection of Data) Act 2001

I, 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:

(a) REVOKE Financial Sector (Collection of Data) (reporting standard) determination No. 28 of 2008, including Reporting standard ARS 231.3A International Exposures: Consolidated (Domestic Entity) made under that Determination; and

(b) DETERMINE Reporting Standard ARS 731.3A International Banking Statistics - Immediate and Ultimate Risk Exposures – Domestic 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.

Under 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.

This instrument commences on 1 October 2017.

Dated: 08 August 2017

[Signed]

Katrina Ellis

General Manager

Data Analytics

Interpretation

In this Determination

APRA means the Australian Prudential Regulation Authority.

financial sector entity has the same meaning given by section 5 of the Act.

Schedule

Reporting Standard ARS 731.3A International Banking Statistics - Immediate and Ultimate Risk Exposures – Domestic Entity comprises the 27 pages commencing on the following page.

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Reporting Standard ARS 731.3A

International Banking Statistics – Immediate and Ultimate Risk Exposures – Domestic Entity

Objective of this Reporting Standard

This reporting standard outlines the requirements for the provision of information to APRA relating to an Australian-owned authorised deposit-taking institution’s international exposures.

It includes Reporting Form ARF 731.3A International Banking Statistics – Immediate and Ultimate Risk Exposures – Domestic Entity (ARF 731.3A) and the associated specific instructions.

Authority

This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Purpose

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.

Application and commencement

This reporting standard applies to an authorised deposit-taking institution (ADI) as set out in the table below.

Class of ADI	Applicable
Australian-owned Bank	Yes
Foreign Subsidiary Bank	No
Branch of a Foreign Bank	No
Building Society	No
Credit Union	No
Other ADIs	No

This Reporting Standard applies for reporting periods ending on or after 31 December 2017.

Information required

An ADI, to which this Reporting Standard applies, must provide APRA with the information required as set out in paragraph 6 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 provide APRA with the information required by ARF 731.3A at Level 2, in respect of 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 ARF 731.3A in respect of each reporting period. In doing so, the immediate parent NOHC must comply with this Reporting Standard as if it were the relevant ADI. Otherwise an ADI, to which this Reporting Standard applies, must provide APRA with the information required by ARF 731.3A at Level 1.

Forms and method of submission

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.

Note: the ‘Direct to APRA’ application software (also known as ‘D2A’) may be obtained from APRA.

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 in respect of each quarter ending 30 September, 31 December, 31 March and 30 June.
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.
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

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

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.
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 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.

Minor alterations to forms and instructions

APRA may make minor variations to:

(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.

If APRA makes such a variation it must notify in writing each ADI that is required to report under this reporting standard.

Transitional

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 in the determination making this reporting standard (being the reporting standard which this reporting standard replaces).

transitional reporting period means a reporting period under the old reporting standard:

(a) which ended before the date of revocation of the old reporting standard; and

(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.

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 the overdue reporting documents in accordance with the old reporting standard.

Interpretation

In this reporting standard:

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.

Australian-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.

authorised NOHC has the meaning given in the Banking Act 1959.

branch of a foreign bank means a ‘foreign ADI’ as defined in section 5 of the Banking Act 1959.

building society means a locally incorporated ADI that assumes or uses the expression ‘building society’ in relation to its banking business.

class of ADI means each of the following:

(i) Australian-owned bank;

(ii) foreign subsidiary bank;

(iii) branch of a foreign bank;

(iv) building society;

(v) credit union; and

(vi) other ADI.

credit union means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business.

due date means the last day of the 28 calendar days provided for in paragraph 9 or, if applicable, paragraph 11.

foreign 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.

immediate parent NOHC means an authorised NOHC, or a subsidiary of an authorised NOHC, that is an immediate parent NOHC within the meaning of Prudential Standard APS 001 Definitions (APS 001).

Level 1 has the meaning in APS 001.

Level 2 has the meaning 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.

other 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.

reporting period means a quarter of a year as provided for in paragraph 8 or, if applicable, paragraph 10.

subsidiary has the meaning in the Corporations Act 2001.

19. In this Reporting Standard, unless the contrary intention appears, a reference to an Act, Regulations or Prudential Standard is a reference to the Act, Regulations or Prudential Standard as in force from time to time.

20. Where this Reporting Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.

ARF_731_3A: International Banking Statistics —- Immediate and Ultimate Risk Exposures — Domestic Entity

Australian Business Number	Institution Name

Reporting Period	Scale Factor
Quarterly	Millions to three decimal places
Reporting Consolidation
Level 1 / Level 2

Claims on an immediate borrower basis: by remaining maturity and country: cross-border claims and foreign currency claims

Vis-à-vis country	<=3 mths	>3 mths <=12 mths	>1yr <=2 yrs	>2yrs <=5 yrs	>5 yrs	Unallocated	Total
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)

Country list

1.1. Total

2. Claims on an immediate borrower basis: by sector of borrower and country: cross-border claims and foreign currency claims

Vis-à-vis country	Banking institutions	Central banks	General government	Non-banking financial institutions	Non-financial corporations	Households and non-profits	Unallocated	Total	of which: Local claims in foreign currencies
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)

Country list

2.1. Total

3. Claims and liabilities on an immediate borrower basis: by sector of borrower and country: local positions in local currencies

Vis-à-vis country	Banking institutions	Central banks	General government	Non-banking financial institutions	Non-financial corporations	Households and non-profits	Unallocated	Total local claims in local currencies	Local liabilities in local currencies
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)

Country list

3.1. Total

4. Risk transfers

Vis-à-vis country	Outward risk transfer	Inward risk transfer	Net transfer of risk to the ultimate borrower
(1)	(2)	(3)	(4)

Country list

4.1. Total

5. Claims on an ultimate risk basis

Vis-à-vis country	Banking institutions	Central Banks	General Government	Non-banking financial institutions	Non-financial corporations	Households and non-profits	Unallocated	Total	Cross-border claims	Local claims
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)

Country list

5.1. Total

6. Derivative contracts, guarantees and credit commitments

Vis-à-vis country	Derivative contracts	Guarantees	Credit commitments
(1)	(2)	(3)	(4)

Country list

6.1. Total

Reporting Form ARF 731.3A

International Banking Statistics — Immediate and Ultimate Risk Exposures — Domestic Entity

Instructions

These instructions assist in the completion of Reporting Form ARF 731.3A International Banking Statistics- Immediate and Ultimate Risk Exposures - Domestic Entity (ARF 731.3A) 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:

http://www.bis.org/statistics/bankstatsguide.htm

ARF 731.3A has two purposes:

to provide information on the international exposures of Australian-owned banks; and
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).

ARF 731.3A is part of the international exposures forms. The four forms (listed below) make up the suite of international exposures forms.

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.
ARF 731.3A collects data on claims broken down by counterparty country, maturity and counterparty sector on the greater of a Level 1 or Level 2 basis.
Reporting Form ARF 731.3B International Banking Statistics - Immediate and Ultimate Risk Exposures – Foreign Entity (ARF 731.3B) collects data on claims broken down by counterparty country, maturity and counterparty sector on a domestic book basis.
Reporting Form ARF 731.4 International Banking Statistics - Balance Sheet Items (ARF 731.4) collects a small number of balance sheet items for Australian-owned banks on the greater of Level 1 or Level 2 basis.

Australian-owned banks complete ARF 731.1, ARF 731.3A and ARF 731.4.

Foreign subsidiary banks and branches of foreign banks complete ARF 731.1 and ARF 731.3B.

Reporting level

ARF 731.3A is to be completed by all Australian-owned banks. Data are to be reported on a Level 2 consolidated basis (or Level 1 where there is no Level 2 entity).

Australian-owned banks should report consolidated data on the cross-border claims of their offices worldwide, and the claims of their foreign affiliates on residents of the countries where the affiliates are located. Australian-owned banks should also report positions vis-á-vis residents of Australia i.e. total domestic claims.

Reporting entities should also include claims in all currencies including AUD vis-à-vis residents of Australia.

Securitisation deconsolidation principle

Except as otherwise specified in these instructions, the following applies:

Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that meets APRA’s operational requirements for regulatory capital relief under Prudential Standard APS 120 Securitisation (APS 120):

(a) special purpose vehicles (SPVs) holding securitised assets may be treated as non-consolidated independent third parties for regulatory reporting purposes, irrespective of whether the SPVs (or their assets) are consolidated for accounting purposes; and

(b) the assets and liabilities of the relevant SPVs may be excluded from the bank’s reported amounts in ARF 731.3A.

Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that does not meet APRA's operational requirements for regulatory capital relief under APS 120, or the ADI elects to treat the securitised assets as on-balance sheet assets under Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk or Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk, such exposures are to be reported as on-balance sheet assets in ARF 731.3A.

Reporting basis and unit of measurement

ARF 731.3A should be completed as at the last day of the stated quarter (i.e. March, June, September and December). Australian-owned banks should submit the completed return to APRA within 28 calendar days after the end of the reporting quarter.

Australian-owned banks are to complete the return in AUD millions to three (3) decimal places (with the data formatted to the nearest million).

Amounts 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).

Report all items on ARF 731.3A in accordance with Australian Accounting Standards unless otherwise specified.

Valuation

Assets and liabilities should be measured in accordance with Australian accounting standards.

Note: International financial claims should be reported gross of specific provisions and the 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.

When reporting the data, reporting entities should also ensure that all figures be prepared in accordance with applicable Australian accounting principles.

As 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.

Financial 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.

Contingent liabilities resulting from guarantees and credit commitments should be valued at face values or the maximum possible exposure.

Standard Business Reporting (SBR)

The accounting type (i.e. credit or debit) is stated for all monetary items and represents the natural accounting type of the item collected.

Background to the international exposures forms

There are two main sets of international banking data: the locational and consolidated banking statistics.

The locational statistics (collected on ARF 731.1) collect data on the domestic book international financial claims (assets) and liabilities of resident banks.

The 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.

As 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.

The 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.

The consolidated data 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.

The differences between locational and consolidated 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.

Figure 1: Flow of funds and BIS locational and consolidated banking data

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$10m $10m

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The implications of this transaction for the BIS data are as follows:

Locational statistics:

Australian 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).

The UK resident bank will report to the UK regulator a $10 million increase in locational claims on a non-financial corporation resident in France.

Consolidated statistics:

Australian resident reporting entities (i.e. ABC Bank, Sydney) will report a $10 million increase in consolidated claims on a non-bank financial corporation resident in France.

Specific instructions

Terms highlighted in bold italics indicate that the definition is provided in these instructions.

1. Claims on an immediate borrower basis: by remaining maturity and country: cross-border claims and foreign currency claims

SBR: submit item 1 and item 2 with accounting type of debit (assets).

Item 1	In item 1 column 1, report the counterparty country of the cross-border or foreign currency immediate borrower claims.
	In item 1 column 2, report the cross-border or foreign currency immediate borrower claims for the selected counterparty country with a residual maturity of less than or equal to three months.
	In item 1 column 3, report the cross-border or foreign currency immediate borrower claims for the selected counterparty country with a residual maturity of greater than three months and less than or equal to 12 months.
	In item 1 column 4, report the cross-border or foreign currency immediate borrower claims for the selected counterparty country with a residual maturity of greater than 1 year and less than or equal to 2 years.
	In item 1 column 5, report the cross-border or foreign currency 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.
	In item 1 column 6, report the cross-border or foreign currency immediate borrower claims for the selected counterparty country with a residual maturity of greater than 5 years.
	Column 7 is derived as:column 8 total cross-border or foreign currency immediate borrower claims; lessthe sum of columns 2-6.
	In item 1 column 8, report the total cross-border or foreign currency immediate borrower claims for the selected counterparty country.
	Item 1.1 column 2 is derived as the total cross-border or foreign currency 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 cross-border or foreign currency 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 cross-border or foreign currency immediate borrower claims with a residual maturity of greater than 12 months and less than or equal to 2 years for all counterparty countries.
	Item 1.1 column 5 is derived as the total cross-border or foreign currency 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 cross-border or foreign currency 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 cross-border or foreign currency immediate borrower claims with an unallocated residual maturity for all counterparty countries. Avoid reporting large amounts as unallocated.
	Item 1.1 column 8 is derived as the total cross-border or foreign currency immediate borrower claims for all counterparty countries.

Claims on an immediate borrower basis: by sector of borrower and counterparty country: cross-border claims and foreign currency claims

Item 2	In item 2 column 1, report the counterparty country of the cross-border or foreign currency immediate borrower claims.
	In item 2 column 2, report the cross-border or foreign currency immediate borrower claims on banking institutions for the selected counterparty country.
	In item 2 column 3, report the cross-border or foreign currency immediate borrower claims on central banks for the selected counterparty country.
	In item 2 column 4, report the cross-border or foreign currency immediate borrower claims on general government counterparties for the selected counterparty country.
	In item 2 column 5, report the cross-border or foreign currency immediate borrower claims on non-banking financial institutions for the selected counterparty country.
	In item 2 column 6, report the cross-border or foreign currency immediate borrower claims on non-financial corporations for the selected counterparty country.
	In item 2 column 7, report the cross-border or foreign currency immediate borrower claims on households and NPISHs for the selected counterparty country.
	Column 8 is derived as:column 9 total cross-border or foreign currency immediate borrower claims; lessthe sum of columns 2-7.
	In item 2, column 9, Report the total cross-border or foreign currency immediate borrower claims for the selected counterparty country.
	In item 2 column 10, report the local claims on the immediate borrower in foreign currencies for the selected counterparty countries. For example, report the claims of a New Zealand subsidiary which are not in New Zealand dollars.
	Item 2.1 column 2 is derived as the total cross-border or foreign currency immediate borrower claims on banking institutions for all counterparty countries.
	Item 2.1 column 3 is derived as the total cross-border or foreign currency immediate borrower claims on central banks for all counterparty countries.
	Item 2.1 column 4 is derived as the total cross-border or foreign currency immediate borrower claims on general government counterparties for all counterparty countries.
	Item 2.1 column 5 is derived as the total cross-border or foreign currency immediate borrower on non-banking financial institutions for all counterparty countries.
	Item 2.1 column 6 is derived as the total cross-border or foreign currency immediate borrower claims on non-financial corporations for all counterparty countries.
	Item 2.1 column 7 is derived as the total cross-border or foreign currency immediate borrower claims on households and NPISHs for all counterparty countries.
	Item 2.1 column 8 is derived as the total cross-border or foreign currency immediate borrower claims with an unallocated counterparty sector for all counterparty countries. Avoid reporting large amounts as unallocated.
	Item 2.1 column 9 is derived as the total cross-border or foreign currency immediate borrower claims for all counterparty countries.
	Item 2.1 column 10 is derived as the total local claims in foreign currencies for all counterparty countries.

3. Claims and liabilities on an immediate borrower basis: by sector of borrower and counterparty country: local positions in local currencies

SBR: submit item 3.1 – 3.9 with accounting type of debit (assets), submit item 3.10 with accounting type of credit (liability).

Item 3	In item 3 column 1, report the counterparty country of the local currency position on an immediate borrower basis.
	In item 3 column 2, report the immediate borrower, local claims in local currency on banking institutions in for the selected counterparty country.
	In item 3 column 3, report the immediate borrower, local claims in local currency on central banks for the selected counterparty country.
	In item 3 column 4, report the immediate borrower, local claims in local currency on general government counterparties for the selected counterparty country.
	In item 3 column 5, report the immediate borrower, local claims in local currency on non-banking financial institutions for the selected counterparty country.
	In item 3 column 6, report the immediate borrower, local claims in local currency on non-financial corporations for the selected counterparty country.
	In item 3 column 7, report the immediate borrower, local claims in local currency on households and NPISHs for the selected counterparty country.
	Column 8 is derived as:column 9 total immediate borrower, local claims in local currency; lessthe sum of columns 2-7.
	In item 3 column 9, report the total immediate borrower, local claims in local currency for the selected counterparty country.
	In item 3 column 10, report the local liabilities in local currencies for the selected counterparty countries.
	Item 3.1 column 2 is derived as the total immediate borrower, local claims in local currency on banking institutions for all counterparty countries.
	Item 3.1 column 3 is derived as the total immediate borrower, local claims in local currency on central banks for all counterparty countries.
	Item 3.1 column 4 is derived as the total immediate borrower, local claims in local currency on general government counterparties for all counterparty countries.
	Item 3.1 column 5 is derived as the total immediate borrower, local claims in local currency on non-banking financial institutions for all counterparty countries.
	Item 3.1 column 6 is derived as the total immediate borrower, local claims in local currency on non-financial corporations for all counterparty countries.
	Item 3.1 column 7 is derived as the total immediate borrower, local claims in local currency on households and NPISHs for all counterparty countries.
	Item 3.1 column 8 is derived as the total immediate borrower, local claims in local currency with an unallocated counterparty sector for all counterparty countries.
	Item 3.1 column 9 is derived as the total immediate borrower, local claims in local currency for all counterparty countries.
	Item 3.1 column 10 is derived as the total local liabilities in local currencies for all counterparty countries.

4. Risk transfers

SBR: submit item 4 column 1 with accounting type of credit (negative asset), submit item 4 column 2 with accounting type of debit (assets).

Item 4	In item 4 column 1, report the counterparty country of the risk transfer.
	In item 4 column 2, report the outward risk transfers for the selected counterparty country.
	In item 4 column 3, report the inward risk transfers for the selected counterparty country.
	In item 4 column 4 is derived as the net of outward risk transfer and inwards risk transfer for the selected counterparty country.
	Item 4.1 column 2 is derived as the total outward risk transfers.
	Item 4.1 column 3 is derived as the total inward risk transfers.
	Item 4.1 column 4 is derived as the total net transfer of risk.

5. Claims on an ultimate risk basis

SBR: submit item 5 with accounting type of debit (assets).

Item 5	In item 5 column 1, report the counterparty country of the ultimate risk claims.
	In item 5 column 2, report the ultimate risk claims on banking institutions for the selected counterparty country.
	In item 5 column 3, report the ultimate risk claims on central banks for the selected counterparty country.
	In item 5 column 4, report the ultimate risk claims on general government counterparties for the selected counterparty country.
	In item 5 column 5, report the ultimate risk claims on non-banking financial institutions for the selected counterparty country.
	In item 5 column 6, report the ultimate risk claims on non-financial corporations for the selected counterparty country.
	In item 5 column 7, report the ultimate risk claims on households and NPISHs for the selected counterparty country.
	Item 5 column 8 is derived as:column 9 total ultimate risk claims; lessthe sum of columns 2-7.
	In item 5 column 9, report the total ultimate risk claims for the selected counterparty country.
	In item 5 column 10, report the cross-border claims on an ultimate risk basis for the selected counterparty countries.
	In item 5 column 11, report the local claims on an ultimate risk basis for the selected counterparty countries.
	Item 5.1 column 2 is derived as the total ultimate risk claims on banking institutions for all counterparty countries.
	Item 5.1 column 3 is derived as the total ultimate risk claims on central banks for all counterparty countries.
	Item 5.1 column 4 is derived as the total ultimate risk claims on general government counterparties for all counterparty countries.
	Item 5.1 column 5 is derived as the total ultimate risk claims on non-banking financial institutions for all counterparty countries.
	Item 5.1 column 6 is derived as the total ultimate risk claims on non-financial corporations for all counterparty countries.
	Item 5.1 column 7 is derived as the total ultimate risk claims on households and NPISHs.
	Item 5.1 column 8 is derived as the total ultimate risk claims with an unallocated counterparty sector for all counterparty countries. Avoid reporting large amounts as unallocated.
	Item 5.1 column 9 is derived as the total ultimate risk claims for all counterparty countries.
	Item 5.1 column 10 is derived as the total cross-border claims on an ultimate risk basis for all counterparty countries.
	Item 5.1 column 11 is derived as the total local claims on an ultimate risk basis for all counterparty countries.

6. Derivative contracts, guarantees and credit commitments

SBR: submit item 6 with accounting type of debit (assets)

Item 6	In item 6 column 1, report the counterparty country of the derivative contracts, guarantees and/or credit commitments.
	In item 6 column 2, report the derivative contracts in a net asset position vis-à-vis the selected counterparty country.
	In item 6 column 3, report the guarantees vis-à-vis the selected counterparty country.
	In item 6 column 4, report the credit commitments vis-à-vis the selected counterparty country.

	Item 6.1 column 2 is derived as the total derivative contracts in a net asset position for all counterparty countries.
	Item 6.1 column 3 is derived as total guarantees for all counterparty countries.
	Item 6.1 column 4 is derived as total credit commitments for all counterparty countries.

Definitions

Banking 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 731.3A, exclude central banks and international organisations (including multilateral development banks). These should be classified as central banks.

Central 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

Claims refers to:

Australian offices’ local claims on Australian residents. For example, any local claim of the Sydney office of an Australian-owned bank on a borrower resident in Australia;
Australian offices’ cross-border claims on non-residents. For example, any claim of the Sydney office of an Australian-owned bank on a borrower resident in New Zealand;
Foreign offices of Australian-owned banks’ local claims on non-residents. For example, any claim of the New Zealand branch of an Australian-owned bank on a borrower resident in New Zealand; and
Foreign offices of Australian-owned banks’ cross-border claims on non-residents - for example, any claim of the New Zealand branch of an Australian-owned bank on a borrower resident in the United States.)

The 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. If derivatives are booked as on-balance sheet items, they should not be reported as part of the item ‘On-balance sheet financial claims’, but separately under the derivative contracts item.

Consolidated statistics – See section Background to the international exposures forms.

Counterparty country refers to where the counterparty of the financial instrument is domiciled.

Countries are as per ISO 3166, available at http://www.iso.org/iso/country_codes

Counterparty sector refers to the economic sector of the counterparty of the financial instrument. There are six counterparty sectors to be reported:

Banking institutions;
Central banks;
General government;
Non-banking financial institutions;
Non-financial corporations;
Households and non-profit institutions serving households (NPISHs); and
Unallocated sector.

Credit 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.

Cross-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).

Derivative 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.

However, 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.

Note: This definition of derivative contracts differs to that used in ARF 731.1.

Foreign currency refers to claims or liabilities not in the local currency of the office they are booked. That is, claims 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 that are denominated in AUD or USD).

General 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.

Guarantees 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.

Guarantees 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.

Immediate borrower claims refers to all on-balance sheet financial claims of the Level 2 consolidated group, excluding derivative contracts and lending of securities, gold and other precious metals without cash collateral.

Inwards risk transfer is a risk transfer that reallocates the claim into the country being reported. Examples of risk transfers are shown in the attachment.

Local 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).

Local currency refers to claims or liabilities of an Australian office in AUD, and claims of offshore offices in the currency of the host country (for example, of a New Zealand domiciled subsidiary denominated in NZD).

Local liabilities refers to the liabilities of an Australian office on Australian residents, and liabilities of offshore offices on residents of the host country (for example, the liabilities on New Zealand residents of a New Zealand domiciled subsidiary).

Locational statistics – See section Background to the international exposures forms.

Maturity refers to the residual maturity of on-balance claims.

Claims are to be entered according to their remaining maturity.
Deposits that are repayable on demand should be allocated to the shortest maturity bracket.
Overdue items should be allocated to the shortest maturity bracket (i.e. ‘< 3 months’).
Claims that cannot be classified by maturity, such as equity and participations, should be assigned to a residual category ‘unallocated’.
Remaining maturities should be defined on the basis of the time to final payment of the relevant claim.
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.
Overdrafts should be allocated to the shortest maturity bracket (i.e. ‘< 3 months’).

Net transfer of risk is the net of outwards risk transfer and inwards risk transfer for a given country.

Non-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.

Non-financial corporations refers to both public and private non-financial corporations and unincorporated enterprise, such as partnerships and branches of foreign corporations.

Non-residents are any entity whose centre of predominant economic interest is outside Australia’s economic territory.

Include:

households whose principal place of residence is overseas; and
foreign branches and foreign subsidiaries of Australian enterprises, for example, a foreign branch of an Australian bank.

Exclude:

Australian-based branches and subsidiaries of foreign enterprises, for example, Australian branches of foreign banks.

Outwards risk transfer is a risk transfer that reallocates the claim from the country being reported. Examples of risk transfers are shown in the attachment.

Residents of Australia are any entity whose centre of predominant economic interest is within Australia’s economic territory.

Include:

households whose principal place of residence is in Australia; and
Australian branches and Australian subsidiaries of foreign enterprises, for example, Australian branches of foreign banks.

Exclude:

foreign branches and foreign subsidiaries of Australian enterprises, for example, foreign branches of Australian banks.

Risk 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.

The 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.

The 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.

In summary, there are four potential forms of risk reallocation:

Lending to a non-resident that is guaranteed by a non-resident third party.

In this case both the outward risk transfer from the original borrower and the risk transfer to the guarantor have to be reported.

ii. Lending to a non-resident that is guaranteed by an Australian resident third party.

In 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.

iii. Lending to a resident that is guaranteed by a non-resident third party.

In this case, report the outward risk transfer from Australia as well as the inward risk transfer to the non-resident guarantor.

iv. Lending to a non-resident where the exposure is extinguished by receiving a cash collateral.

In this case only the outward risk transfer from the original non-resident borrower has to be reported (but no inward risk transfer to Australia).

Examples of risk transfers are shown in the attachment.

Ultimate 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.

Similarly, 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.

In 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.

It 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.

The 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.

Claims 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.

Unallocated sector refers to where the counterparty sector is unknown.

Attachment: Examples of reporting of risk transfers

Example 1

An 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:

	Immediate risk	Outward risk transfers	Inwards risk transfers	Net risk transfers
Hong Kong	10	10		-10
Japan			10	10

Example 2

If 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.

	Immediate risk	Outward risk transfers	Inwards risk transfers	Net risk transfers
Australia			10	10
Hong Kong	10	10		-10

Example 3

If 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.

	Immediate risk	Outward risk transfers	Inwards risk transfers	Net risk transfers
Australia	10	10		-10
Japan			10	10

Example 4

If 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 in Japan and an inward risk transfer to the banking institutions sector in Japan.

	Immediate risk	Outward risk transfers	Inwards risk transfers	Net risk transfers
Japan		10	10	0

As 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.

Example 5

If 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).

	Immediate risk	Outward risk transfers	Inwards risk transfers	Net risk transfers
Hong Kong		10		-10
Japan			10	10

As 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.

Example 6

An 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.

	Immediate risk	Outward risk transfers	Inwards risk transfers	Net risk transfers
New Zealand	10	10		-10
Australia			10	10

Example 7

An 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.

	Immediate risk	Outward risk transfers	Inwards risk transfers	Net risk transfers
Australia			10	10
New Zealand	10	10		-10

Example 8

A 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.

	Immediate risk	Outward risk transfers	Inwards risk transfers	Net risk transfers
Australia	10	10		-10
USA			10	10

1 Financial Sector (Collection of Data) (reporting standard) determination No. 3 of 2017

Financial Sector (Collection of Data) (reporting standard) determination No. 3 of 2017

Reporting Standard ARS 731.3A International Banking Statistics – Immediate and Ultimate Risk Exposures – Domestic Entity

Financial Sector (Collection of Data) Act 2001

I, 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:

Under 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.

This instrument commences on 1 October 2017.

Dated: 08 August 2017

[Signed]

Katrina Ellis

General Manager

Data Analytics

Interpretation

In this Determination

APRA means the Australian Prudential Regulation Authority.

financial sector entity has the same meaning given by section 5 of the Act.

Schedule

Reporting Standard ARS 731.3A International Banking Statistics - Immediate and Ultimate Risk Exposures – Domestic Entity comprises the 27 pages commencing on the following page.

Reporting Standard ARS 731.3A

International Banking Statistics – Immediate and Ultimate Risk Exposures – Domestic Entity

Objective of this Reporting Standard

This reporting standard outlines the requirements for the provision of information to APRA relating to an Australian-owned authorised deposit-taking institution’s international exposures.

It includes Reporting Form ARF 731.3A International Banking Statistics – Immediate and Ultimate Risk Exposures – Domestic Entity (ARF 731.3A) and the associated specific instructions.

The Determination operationalises several technical concepts used in BIS consolidated international banking statistics, adapted into APRA reporting form ARF 731.3A. Key concepts are defined in the instrument and in the instructions; the Determination imports other APRA prudential definitions by reference (for example, Level 1/Level 2, authorised NOHC) and clarifies how certain exposures are allocated for immediate and ultimate risk purposes.

Principal concepts set out in the instrument include:

Scope and reporting population. “Australian‑owned bank” is the class required to report (paragraph 3; definitions at paragraph 18). Level 2 consolidated reporting is mandated where applicable; otherwise Level 1 is used (paragraph 6; definitions referencing APS 001).
Immediate borrower (immediate risk) and ultimate risk. Immediate‑risk claims record the exposure to the immediate borrower or booking office. Ultimate‑risk claims reallocate exposures to the country where the final credit risk rests, after accounting for guarantees, collateral and relevant credit derivatives (sections “Background to the international exposures forms”, “Risk transfers”, and definitions). The form collects both immediate and ultimate risk views in separate items.
Consolidation and residency concepts. The consolidated statistics require netting inter‑office positions within the Level 2 group and include foreign affiliates’ claims on residents of their host countries (instructions under “Reporting level” and “Background to the international exposures forms”). Locational versus consolidated statistics are explicitly explained: locational (ARF 731.1) reports by residency of the office; consolidated (ARF 731.3A) reports by global consolidated positions of the reporting group.
Securitisation deconsolidation. Where securitisations meet APRA’s operational requirements for regulatory capital relief under Prudential Standard APS 120, APRA permits SPVs that hold securitised assets to be treated as non‑consolidated third parties for reporting, with corresponding exclusion of those assets from ARF 731.3A. If securitisations do not meet APS 120 requirements, or the ADI elects on‑balance treatment under APS 112/113, then the assets are reported on‑balance (section “Securitisation deconsolidation principle”).
Risk transfers and netting. “Risk transfers” captures outward and inward reallocations of claims arising from guarantees, collateral, and credit derivatives in the banking book; the form requires reporting of outward transfers, inward transfers and the net (items 4 and 5 and supporting instructions). The instructions require net treatment across the reporting universe.
Valuation and measurement rules. The instrument requires reporting in AUD millions to three decimal places, conversion of foreign currency amounts according to AASB 121, and valuation consistent with Australian accounting standards and BIS guidance. It instructs that financial claims be reported gross of specific provisions and the General Reserve for Credit Losses (section “Valuation”, references to APS 220 and AASB 139).
Derivatives and credit derivatives treatment. Derivatives are to be reported at positive fair value only, netting legally enforceable bilateral agreements, and credit derivatives held in the trading book are included; credit derivatives in the banking book are treated as risk transfers rather than derivatives for ultimate risk allocation (definitions and item 6).

Additional operational concepts are cross‑referenced: ISO 3166 country codes for counterparty country, BIS Guide for the conceptual rationale, and APRA’s Direct to APRA electronic submission platform. The Determination provides specific cell‑level instruction for items grouped under six worksheets in ARF 731.3A (immediate borrower by maturity; immediate borrower by sector; local positions in local currencies; risk transfers; ultimate risk claims; derivatives/guarantees/commitments), each with derived totals and guidance to avoid overuse of “unallocated” buckets.

The instrument also frames quality expectations: external auditor review must be performed annually at a minimum to permit an external auditor to form an opinion on accuracy and reliability (paragraph 12). APRA may make minor non‑substantive variations to forms and instructions without changing substantive requirements (paragraphs 15-16), and it will provide notice of such changes.

Mechanically, these concepts determine how an Australian‑owned bank must aggregate, classify and value exposures across countries, sectors and maturities, how to reallocate via risk transfers for ultimate risk analysis, and how to report derivatives and contingent exposures for BIS and APRA use (paragraph 2 on purposes).

The Determination applies narrowly in population but broadly in data scope. It applies only to ADIs that are Australian‑owned banks as defined in the standard (paragraph 3 and definitions at paragraph 18). This excludes foreign subsidiary banks, branches of foreign banks, building societies, credit unions and other non‑Australian‑owned ADIs from ARF 731.3A reporting (paragraph 3). However, where an Australian‑owned bank forms part of a Level 2 consolidated group, the Level 2 consolidated group must report at Level 2 unless the Australian ADI is a subsidiary of an authorised NOHC , in that case the immediate parent authorised NOHC must provide the Level 2 report and comply with this Reporting Standard as if it were the ADI (paragraph 6). Thus, the instrument allocates reporting responsibility up the corporate tree in specific circumstances.

Primary actors who bear cost and compliance obligations:

Australian‑owned banks required to complete ARF 731.3A (paragraphs 3 and 6).
Immediate parent authorised NOHCs that must file Level 2 data where applicable (paragraph 6).

Secondary actors that are affected operationally though not the formal reporting addressee:

Internal departments within reporting banks (treasury, risk, accounting, IT) that must map exposures by country, sector and maturity, implement valuation and currency conversion, and prepare supporting documentation (numerous instructions under “Reporting basis”, “Valuation”, and item instructions).
External auditors engaged to perform the annual review and testing of processes and controls supporting the reported data (paragraph 12; references to GS 012).
APRA, which receives and processes the returns and may exercise discretion to vary reporting periodicity and minor form instructions (paragraphs 10, 15-16).
The Reserve Bank of Australia and the Bank for International Settlements as users of the compiled statistics (paragraph 2 sets out these purposes).

Who decides and enforces day‑to‑day compliance:

APRA decides the reporting method (Direct to APRA or notified method), changes reporting periods and grants extensions in writing, issues digital certificates for transmission, and notifies any minor variations in writing (paragraphs 7, 10-11, 14-16). The Determination does not itself set out criminal or civil penalties; it prescribes reporting obligations, formats and processes. The instrument is silent on explicit sanctions within its text; enforcement steps under the Financial Sector (Collection of Data) Act 2001 or other statutes are not set out in this Determination (no penalties specified in the text).

Who benefits from the outputs:

APRA (prudential supervision), the Reserve Bank of Australia and the BIS (aggregate international banking statistics) receive the data (paragraph 2). The Determination explicitly states APRA may use the information for prudential purposes and for fulfilling Australia’s obligations to the BIS; the Reserve Bank may also use the information (paragraph 2).

Concentrated vs diffuse impacts:

The compliance burden concentrates on the reporting Australian‑owned banks and their NOHCs (paragraphs 3 and 6). The benefits (statistical information, prudential oversight) are diffuse across regulators, policymakers, and the broader public with interests in systemic risk monitoring (paragraph 2).

Geographic scope and subsidiaries:

The consolidated reporting requirement means the dataset covers the global offices of the Level 2 group, including foreign affiliates’ claims on residents of their host countries (instructions under “Reporting level”). This extends operational data collection to overseas affiliates and booking offices, which may create cross‑jurisdictional data collection costs for the reporting group.

This Determination creates a body of mandatory duties on reporting ADIs and affords APRA several operational rights in relation to the reporting process. The instrument organises duties around submission content, timing, format, authorisation and quality controls.

Primary duties of reporting ADIs:

Provide the information required by ARF 731.3A for each reporting period (quarterly as default) in the specified electronic format, using APRA’s D2A application or an APRA‑notified alternative (paragraphs 5-7). The duty is to provide the information “in respect of each reporting period” (paragraph 5).
Report on a Level 2 consolidated basis where the ADI is part of a Level 2 group unless the ADI is a subsidiary of an authorised NOHC that must file the report itself (paragraph 6).
Submit reports for the standard quarter‑ends (30 September, 31 December, 31 March and 30 June) within 28 calendar days after the period end, unless APRA changes reporting periods or grants an extension in writing (paragraphs 8-11). The Determination clarifies that due dates falling on non‑business days are nevertheless binding (note to paragraph 11).
Ensure the information reported is supported by processes and controls that have been reviewed and tested by the ADI’s external auditor at least annually (paragraph 12). These reviews should be consistent with GS 012 issued by the Auditing and Assurance Standards Board.
Establish internal systems, processes and controls for internal review and authorisation of the information to assure completeness and reliability (paragraph 13).
Digitally sign, authorise and encrypt submissions; maintain authorised officers who hold APRA‑issued digital certificates for transmission (paragraph 14).
Apply valuation, aggregation and classification rules mandated in the instructions, including currency conversion under AASB 121 and valuation consistent with Australian accounting standards (sections “Reporting basis and unit of measurement”, “Valuation” and related instructions).

APRA’s rights and operational discretions:

APRA may change the reporting frequency for any particular ADI, requiring more or less frequent reporting with written notice, taking into account the ADI’s circumstances, prudential supervision needs, and BIS or RBA requirements (paragraph 10).
APRA may grant extensions of due dates in writing (paragraph 11).
APRA may make minor variations to forms and instructions (to correct technical or programming errors or clarify application) without changing substantive requirements, provided APRA notifies each affected ADI in writing (paragraphs 15-16).
APRA issues the digital certificates required to authenticate D2A submissions and will specify other transmission methods in writing where applicable (paragraph 7 and 14).
APRA determines the scope of application as to which ADIs are required to report (paragraph 3).

Rights or limitations explicitly stated in the Determination:

The Determination does not itself create a general right of appeal, nor does it set out penalty or enforcement mechanisms within its text; it confines itself to specifying the reporting standard, the technical form (ARF 731.3A), procedures for submission and quality control. Where APRA exercises a power under the Reporting Standard, the exercise must be in writing (paragraph 20) and APRA must notify impacted ADIs of minor variations (paragraph 16).

Specific technical duties:

Apply the securitisation deconsolidation principle where SPVs meet APS 120 operational requirements; otherwise include securitised assets on balance (section “Securitisation deconsolidation principle”).
Report derivative contracts, guarantees and credit commitments using the prescribed approaches (items 4 and 6 and the “Definitions” section). For derivative contracts, include positive fair values after legally enforceable netting and exclude negative fair values (Definitions under “Derivative contracts”; item 6).
Avoid reporting large amounts as “unallocated” in sector or maturity breakdowns (repeated admonitions in item instructions).

Who pays and who decides:

Reporting ADIs pay (incur the compliance costs). APRA decides the content, submission method and may alter frequency or minor form elements (paragraphs 7, 10, 15).

Behavioural implications:

ADIs must allocate resources (accounting, risk, data, audit) to collect, reconcile and validate cross‑border, local and ultimate risk exposures on a consolidated basis and to produce audited supporting evidence annually.

The text of this Determination focuses on reporting requirements, formats, definitions and administrative procedures; it does not itself set out civil or criminal penalties, monetary fines, or specific enforcement mechanisms within the Determination’s text. The instrument prescribes mandatory reporting duties and gives APRA operational discretions , for example, to change reporting frequency for particular ADIs (paragraph 10), to grant extensions in writing (paragraph 11), to make minor non‑substantive variations to forms and instructions (paragraphs 15-16), and to issue digital certificates and specify submission methods (paragraphs 7 and 14). The Determination reiterates that, where APRA is to exercise a power or discretion under the Reporting Standard, that exercise is to be done in writing (paragraph 20).

Because the Determination itself does not articulate enforcement penalties, it leaves the question of sanctions and enforcement mechanisms to other legal instruments or to the broader statutory regime under which APRA operates. The Determination is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (authority paragraph 1 and front matter), but the Determination text does not reproduce that Act’s enforcement provisions. Accordingly, readers must not infer from this Determination any specific penalty quantum or procedure; such mechanisms are not stated here.

Operational enforcement levers that are explicit in the Determination include:

APRA’s power to change reporting periods for a particular ADI, in writing, to require more frequent or less frequent reporting having regard to prudential needs and external requirements (paragraph 10). This is an operational leverage to manage supervision intensity for particular institutions.
APRA’s right to require submission via specified electronic means and to issue digital certificates, which effectively controls access to the submission channel and authentication (paragraphs 7 and 14).
APRA’s right to be notified of and effect minor variations to forms and instructions without altering substantive requirements, and to notify reporting ADIs in writing of any such changes (paragraphs 15-16). Frequent notification obligations can create compliance management costs.

What the Determination does not specify:

It does not articulate the consequences of late or inaccurate returns, nor does it specify administrative penalties or criminal sanctions. It likewise does not describe APRA’s remediation or enforcement process for non‑compliance within the text presented.

Practical implication for reporting ADIs:

Even absent specified penalties in the Determination, the reporting obligation and APRA’s supervisory and administrative controls (submission channel, written notices, auditor review obligations) create strong incentives for adherence. Institutions should therefore assume that APRA expects timely and accurate reporting and that breaches may be dealt with under APRA’s broader statutory powers or other applicable law, although this Determination does not itself set out those powers.

The Determination operates within a network of referenced standards, accounting rules and registration definitions. It expressly situates itself as a reporting instrument made under the Financial Sector (Collection of Data) Act 2001 (front matter and paragraph 1). Within its text it cross‑references other APRA prudential standards and Australian accounting standards; these cross‑references prescribe how to treat certain exposures for reporting purposes.

Explicit cross‑references appearing in the Determination:

APRA prudential standards: APS 001 Definitions is referenced for Level 1/Level 2 and immediate parent NOHC definitions (paragraphs 6 and 18). APS 120 Securitisation is referenced for the operational requirements that permit securitisation deconsolidation (section “Securitisation deconsolidation principle”). APS 112/113 (capital adequacy standards) are referenced for consequences should an ADI elect to treat securitised assets as on‑balance sheet (same section). APS 220 is referenced in the valuation section to instruct that provisions and the General Reserve for Credit Losses be excluded from reported amounts.
Australian accounting standards: AASB 121 (currency conversion) and AASB 139 (financial instruments) are invoked to set conversion and valuation rules (sections “Reporting basis and unit of measurement” and “Valuation”).
External auditing guidance: Guidance Statement GS 012 Prudential Reporting Requirements for Auditors of ADIs is cited as guidance on the scope and nature of the external auditor’s review and testing (paragraph 12).

Operational interaction points:

Where the Determination permits securitisation deconsolidation for reporting, it does so only where the securitisation meets APRA’s operational requirements under APS 120. Conversely, where securitisation does not meet APS 120 or the ADI elects on‑balance treatment under APS 112/113, the assets must be reported on balance in ARF 731.3A. That creates a direct interaction between reporting treatment and prudential capital treatment (see “Securitisation deconsolidation principle”).
The Level 1/Level 2 reporting requirement imports APS 001 definitions, which determine whether a Level 2 consolidated basis applies and whether immediate parent NOHC substitution is required (paragraph 6 and definitions). The Division of reporting responsibility up the corporate chain therefore depends on entities’ classification under APS 001.
The valuation and currency conversion instructions require consistency with Australian accounting standards; this ties the reported numbers to audited accounting treatments and requires alignment between accounting and reporting processes.
The Determination’s requirement that reported claims be gross of specific provisions and the General Reserve for Credit Losses means that reported figures will differ from some balance‑sheet presentations that net provisions; this creates an explicit reporting/accounting divergence regulated by APS 220 as referenced.

What is not in the Determination:

The instrument does not restate the enforcement provisions or other powers contained in the Financial Sector (Collection of Data) Act 2001, nor does it recite in full the definitions or thresholds contained in the cited prudential standards. For readers, this means that the Determination must be read in tandem with the Act and the referenced standards for a comprehensive compliance picture.

Implications for legal and compliance teams:

Compliance requires coordinated review of APS 001, APS 120, APS 112/113, APS 220 and applicable AASB standards to ensure the reporting treatment matches prudential capital treatment and accounting recognition where the Determination references those standards. The reporting duty therefore sits at the intersection of prudential regulation, accounting practice and APRA’s data collection rulemaking.

This Determination expressly revokes Financial Sector (Collection of Data) (reporting standard) determination No. 28 of 2008 and replaces it with Reporting Standard ARS 731.3A, including replacing the previous Reporting Standard ARS 231.3A International Exposures: Consolidated (Domestic Entity) (front matter). The instrument is dated 8 August 2017 and commences on 1 October 2017 (front matter and paragraph 4).

Transitional provisions are set out in paragraph 17, which requires ADIs to report for transitional reporting periods under the old reporting standard where the reporting period ended before the date of revocation but the submission was due on or after the date of revocation. The Determination adopts a savings approach for outstanding reports due under the old standard, so that overdue reporting documents remain due under the old standard if their due date was before the revocation (paragraph 17 and its Note).

Operationally, the Determination contemplates and authorises further non‑substantive changes post‑commencement:

APRA may make minor variations to a form or its instructions to correct technical, programming or logical errors or to clarify application, without changing substantive requirements (paragraph 15). If APRA makes such a variation it must notify in writing each ADI required to report under the standard (paragraph 16). This gives APRA a standing right to correct or clarify the form and instructions administratively post‑commencement.
APRA may, by written notice, change reporting periods for a particular ADI to require more frequent or less frequent reporting, subject to considerations specified in paragraph 10. This is a tailored amendment power affecting frequency rather than form content.

The Determination also incorporates other documents by reference that are external and subject to their own amendment paths, for example:

BIS Guide and ISO country code lists are cited as external standards for the conceptual basis and country coding, respectively (instructions and definitions). Changes to those external references may therefore drive operational adjustments for reporters.
Prudential standards and accounting standards cited (APS 001, APS 120, APS 112/113, APS 220, AASB 121, AASB 139) are separate instruments that APRA or accounting standard setters can amend; such changes may have consequential effects on how institutions apply ARF 731.3A.

Record of changeability:

The Determination provides both fixed requirements (population, core items) and flexible tools for APRA to adjust reporting frequency and make minor non‑substantive improvements to the forms and instructions. The instrument therefore establishes the current baseline (as from 1 October 2017) while anticipating administrative refinement.

What the Determination does not do in amendment terms:

It does not establish a formal public consultation or notice requirement for substantive changes to the reporting standard itself within the text provided; minor variations can be made and notified in writing, and more substantive changes would require a new determination or amendment under the enabling Act.

The text of this Determination contains no reference to any litigation or judicial consideration of ARS 731.3A. It does not cite any court decisions, nor does it record past disputes or legal challenges to the predecessor instrument (No. 28 of 2008) or to the present Determination. The Determination is an administrative instrument replacing an earlier reporting standard, and it does not contain or reference a litigation history.

Practical consequence for counsel and compliance teams:

There is no case law or judicial interpretation contained within this document that would assist in resolving ambiguities in reporting requirements. Where legal questions arise about the validity, scope or enforcement of the reporting obligations, practitioners must look to the Financial Sector (Collection of Data) Act 2001, other APRA instruments, and any subsequent case law or administrative decisions outside the Determination text. That material is not included in this Determination and therefore not within the scope of its express content.
Because the Determination prescribes technical definitions and cross‑references to other regulatory instruments, disputes about interpretation are likely to focus on how APRA’s definitions and cross‑referenced standards are applied in practice, and how to reconcile accounting, prudential and statistical treatments. Those disputes would be litigated or contested outside the Determination text and are not documented here.
The absence of litigation references suggests that, as of the instrument’s issuance, ARS 731.3A was an administrative replacement without associated litigation recorded in the Determination itself.

This Determination contains numerous technical traps and operational pitfalls that can cause misreporting, unnecessary internal dispute, or avoidable regulatory friction if not anticipated and managed.

Narrow application: Only Australian‑owned banks are required to complete ARF 731.3A (paragraph 3). Many within the ADI universe are excluded (foreign subsidiaries, branches of foreign banks, building societies, credit unions and “other ADIs”). Mistakenly treating other ADIs as in‑scope will raise unnecessary work.
Level 2 consolidation and NOHC exception: The return is generally to be completed on a Level 2 consolidated basis (instructions under “Reporting level”), but where an ADI is a subsidiary of an authorised NOHC, the immediate parent NOHC must file as if it were the ADI (paragraph 6). Firms must determine their APS 001 classification and the corporate reporting point carefully; errors in consolidation choice will misstate exposures.
Securitisation deconsolidation nuance: SPVs can be treated as non‑consolidated third parties for reporting only where the securitisation meets APRA’s operational requirements for regulatory capital relief under APS 120 (section “Securitisation deconsolidation principle”). If the SPV does not meet APS 120, or the ADI elects certain capital treatments (APS 112/113), the assets must be included on balance. That creates a tight linkage between capital decisions and reporting outcomes; a change in capital treatment may require a change in reported data.
Currency conversion and formatting oddity: Reporting must be in AUD millions to three decimal places and “formatted to the nearest million” (section “Reporting basis and unit of measurement”). This language is potentially contradictory and may create confusion about rounding and display; firms should confirm APRA’s expected numeric format through D2A or APRA guidance.
Exclusion of provisions and GRCL: The standard requires reporting of claims gross of specific provisions and the General Reserve for Credit Losses as defined by APS 220 (Valuation). This differs from many financial statements where provisions reduce net carrying amounts. Failure to follow this rule will produce materially different numbers than accounting statements.
Derivative treatment differences: The definition and treatment of derivatives in ARF 731.3A differ from ARF 731.1 (noted in Definitions). Only positive fair values are included, negative fair values are excluded as they are liabilities, and credit derivatives in the banking book are to be reported as risk transfers while those in the trading book are reported under derivative contracts (Definitions and item 6). Misclassification between trading and banking book will affect ultimate risk allocations.
Ultimate risk “look‑through” practical limits: The instructions favour a look‑through approach for holdings of credit linked notes, CDOs and ABS. But where look‑through is not practicable, estimates must be used or allocation to immediate borrower country may be necessary. The instrument recognises practical limits but expects best efforts, creating potential judgment calls and audit scrutiny.
Unallocated buckets discouraged: The form repeatedly warns “Avoid reporting large amounts as unallocated.” Relegating material exposures to “unallocated” to avoid mapping work may attract queries.
Audit coverage timing: External auditor review is required on an annual basis or more frequently if necessary to form an opinion on accuracy and reliability (paragraph 12). Internal teams need to plan cycles so the external auditor can complete testing in time for periodic submissions and for APRA’s expectations.
APRA’s discretionary change power: APRA may change reporting periods for a particular ADI to require more or less frequent reporting (paragraph 10). Institutions may be called upon to report more frequently on short notice if APRA considers it necessary for prudential supervision. Systems must be flexible.
Transitional reporting trap: Transitional reporting rules (paragraph 17) require ADIs to report under the old standard for periods that ended before revocation but for which returns were due after revocation. Failure to track legacy returns could lead to overdue filings.
Data ownership across jurisdictions: Consolidated reporting requires inclusion of foreign affiliates’ claims; coordination with overseas subsidiaries’ local systems and legal restrictions on data transfer need consideration. The Determination requires the consolidated data but does not address cross‑border data transfer rules; operational constraints may arise.
Country coding obligations: The Determination requires ISO 3166 country codes. Mis‑coding or inconsistent use across systems will impede reconciliations.
No penalties specified here: While the Determination mandates reporting, it does not set out penalties. Lack of explicit penalties in the instrument does not mean APRA lacks enforcement; but the absence of clear remedial procedure in this text can create uncertainty about consequences for late or inaccurate reports.

In short, the principal gotchas are classification and consolidation decisions (Level 1/Level 2, NOHC), securitisation treatment tied to APS 120/112/113 choices, derivative and credit derivative classification distinctions, look‑through practicalities, rounding/formatting ambiguity, and the annual auditor testing timing. Each of these items requires explicit governance, documented methodology and audit trail to withstand APRA queries.

Compliance requires governance, data architecture, controls, audit engagement and an operational calendar aligned to APRA’s rules. Below is a practical, source‑grounded checklist mapped to the Determination’s requirements.

Confirm in‑scope status and reporting entity
- Determine whether the ADI is an “Australian‑owned bank” for the purposes of ARF 731.3A (paragraph 3; definitions at paragraph 18).
- If part of a Level 2 consolidated group, confirm whether the ADI must report at Level 2 or whether the immediate parent authorised NOHC will file (paragraph 6). Consult APS 001 definitions to establish Level 1/Level 2 status.
Establish reporting calendar and deadlines
- Default reporting periods: quarters ending 30 Sep, 31 Dec, 31 Mar, 30 Jun (paragraph 8).
- Due date: within 28 calendar days after period end (paragraph 9). Build workflows to ensure periodic data close, validation, audit testing and digital signing within this window.
- Account for APRA’s right to require different periodicity for particular ADIs and the ability to grant extensions in writing (paragraphs 10-11). Retain a business process to respond to APRA notices.
Data mapping and coverage
- Map exposures to ARF 731.3A worksheets: immediate borrower by maturity (item 1), immediate borrower by sector (item 2), local positions in local currencies (item 3), risk transfers (item 4), ultimate risk claims (item 5), derivatives/guarantees/commitments (item 6) (instructions).
- Include global offices and foreign affiliates in consolidation (instructions under “Reporting level” and “Background to the international exposures forms”).
- Use ISO 3166 country codes for counterparty country allocation (Definitions).
Valuation, currency conversion and format
- Convert foreign currency amounts in accordance with AASB 121 (section “Reporting basis and unit of measurement”).
- Report in AUD millions to three decimal places (section “Reporting basis and unit of measurement”) and confirm APRA’s precise formatting expectations with D2A. Document rounding rules given the potential ambiguity in the phrase “formatted to the nearest million.”
- Value assets and liabilities in line with Australian accounting standards and valuation guidance; report financial claims gross of specific provisions and GRCL (Valuation; references to APS 220 and AASB 139).
Securitisation and special treatments
- Determine whether SPVs meet APS 120 operational requirements for deconsolidation; if so, treat SPVs as independent third parties and exclude their assets from ARF 731.3A; otherwise include (section “Securitisation deconsolidation principle”).
- Where the ADI elects on‑balance treatment under APS 112/113, ensure ARF 731.3A includes securitised exposures accordingly.
Derivative and credit derivative treatment
- Report derivatives at positive fair values after legally enforceable netting; exclude negative fair values (Definitions and item 6).
- Ensure credit derivatives in the trading book are reported under derivative contracts, and those in the banking book are treated as risk transfers (Definitions).
Risk Transfers and ultimate risk allocation
- Build processes to identify guarantees, collateral and credit‑derivative cover that reallocate exposure to ultimate risk country. Apply look‑through for credit‑linked notes, collateral debt obligations and ABS where practicable; otherwise document estimates and methodology (Definitions and items 4-5).
- Reconcile immediate and ultimate risk totals; ensure net outward/inward transfer totals reconcile as instructed (items 4 and 5; examples and attachment).
Quality control and audit
- Develop and document internal systems, processes and controls for data preparation and review (paragraph 13).
- Engage external auditors to perform the annual review/testing required to permit an auditor to form an opinion on accuracy and reliability. Use GS 012 guidance as the basis for scope and nature of the auditor’s work (paragraph 12).
- Retain audit evidence, reconciliations, and rationale for key judgement calls (look‑through, unallocated buckets, securitisation treatment).
Submission mechanics and digital authorisation
- Obtain APRA’s Direct to APRA (D2A) software and test the transmission process (paragraph 7).
- Identify officers authorised by the ADI to transmit returns and obtain APRA‑issued digital certificates for digital signing and encryption (paragraph 14). Build contingency procedures for certificate renewal and for alternative APRA‑notified submission methods.
Governance and documentation

Establish a standing ARF 731.3A governance committee (finance, treasury, risk, operations, legal, compliance, audit) to approve methodologies, escalation thresholds, and ultimate sign‑off.
Document methodologies for maturity allocation, sector classification, currency conversion and ultimate risk allocation, and keep them up to date for APRA inspection.
Maintain a change log for any APRA‑notified minor form/instruction variations (paragraphs 15-16) and an archive of past versions to support reconciliations and transitional reporting (paragraph 17).

Reconciliations to other returns and systems

Reconcile ARF 731.3A figures to ARF 731.1 (locational) and ARF 731.4 (balance sheet items) where appropriate, noting differences in scope and definitions (instructions).
Keep parallel reconciliations to statutory accounts, noting that provisions/GRCL exclusions and derivative fair‑value rules will create differences.

Contingency planning and practical testing

Test systems for more frequent reporting if APRA invokes paragraph 10. Ensure the firm can produce validated data more often than quarterly.
Conduct dry‑runs for transitional periods and for conversion of historical data, since transitional reporting under paragraph 17 can require the old form for certain periods.

Responding to APRA queries

Be prepared to provide supporting documentation, independent reconciliations and external auditor confirmations promptly. APRA requires written notice for changes it makes and will notify ADIs of minor variations in writing (paragraphs 15-16).

Operational costs and implementation risks to budget for:

Data engineering and systems work to extract and consolidate exposures across global booking platforms.
External audit fees for the required annual review and possibly more frequent testing.
Legal and compliance resources to document methodologies and co‑ordinate with APRA on clarifications and minor form changes.
Potential delays from overseas affiliates in supplying currency‑specific, residency‑specific data; contingency time must be included in the 28‑day window.

Follow these steps in sequence and maintain clear, auditable documentation of the chosen methodologies. Where the Determination leaves any ambiguity, seek written clarification from APRA, because APRA’s discretion to issue written notices and minor form variations is the instrument’s built‑in operational control (paragraphs 10, 15-16).

Financial Sector (Collection of Data) (reporting standard) determination No. 3 of 2017

Plain English Summary

Deep Dive

What it does

Current sections

Financial Sector (Collection of Data) (reporting standard) determination No. 3 of 2017

Source text: opening excerpt

1 Financial Sector (Collection of Data) (reporting standard) determination No. 3 of 2017

Main concepts

Who it affects

Key duties and rights

Penalties and enforcement

How it interacts with other laws

Amendment history

Litigation history

Gotchas

How to comply