Financial Sector (Collection of Data) (reporting standard) determination No. 3 of 2020
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Connection means the relationship between two counterparties in a group of connected counterparties. A connection can be any of the following:
a control relationship;
an economic interdependence relationship;
both control and economic interdependence;
other connections or relationships; or
a third party additional risk factor.
A control relationship has the meaning given by paragraphs 22, 23 and 25 of APS 221.
Counterparty means either the individual counterparty or a group of connected counterparties to an exposure.[2] In the case of a group of connected counterparties, the ADI’s aggregate exposure to the group of connected counterparties is considered one exposure.
Counterparty country means the country where the counterparty of the exposure is domiciled. ADIs are to report the English name of the relevant country as assigned by the ISO 3166 Maintenance Agency to a country code defined under the International Organization for Standardization’s International Standard ISO 3166. The ISO 3166 Maintenance Agency maintains a free online browsing platform setting out the names of countries and their corresponding codes, available at https://www.iso.org/obp/ui/#search/code/.
Counterparty name means the legal name of the counterparty.
Counterparty sector means the type of sector of the counterparty of the exposure. There are 12 counterparty sectors which can be reported:
banking;
insurance;
superannuation;
central or Commonwealth government;
State or Territory government;
local government;
central banks;
central counterparties;
SPVs;
International banking agencies and multilateral regional development banks;
other financial institutions; and
other counterparties.
Credit risk mitigation (CRM) means the CRM techniques allowed in Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112).
An economic interdependence relationship has the meaning given by paragraph 24 of APS 221.
Excluded exposures means exposures excluded from large exposures under paragraph 18 of APS 221.
Exclusion category means the reason for the exposure being an excluded exposure. There are three exclusion categories which may be reported:
Sovereigns held as HQLA;
QCCP – clearing; or
Settlement exposure.
Exposure is defined in paragraph 15 of APS 221.
Government-related entities has the meaning given in APS 221.
Group counterparty name means a name for a group of connected counterparties that includes the legal name of the principal counterparty in that group. An example of this could be ‘ABC Ltd master group’ if ‘ABC Ltd’ is the principal counterparty in that group of connected counterparties.
Group of connected counterparties has the meaning given in APS 221.
Large exposure has the meaning given in APS 221.
Legal Entity Identifier is a 20-digit, alpha-numeric code issued by a Local Operating Unit in accordance with the International Organization for Standardization’s International Standard ISO 17442. The Global Legal Entity Identifier Foundation maintains a free online searchable database of Legal Entity Identifiers, available at https://search.gleif.org/#/search/.
Market related means off-balance sheet exposures arising from market related contracts. Refer to APS 112 for examples of these contracts.
Non-market related means off-balance sheet exposures that are not market related. Refer to APS 112 for examples of these commitments.
Off-balance sheet exposures means the off-balance sheet portion of any exposure, measured in accordance with Attachment A of APS 221.
On-balance sheet exposures means the on-balance sheet portion of any exposure, measured in accordance with Attachment A of APS 221.
Other connections or relationships has the meaning given by paragraph 21(a)(iii) of APS 221.
Qualifying central counterparties (QCCPs) has the meaning given in APS 112.
QCCP – clearing has the meaning given by paragraph 18(h) of APS 221.
Settlement exposures has the meaning given by paragraph 18(g) of APS 221.
Sovereigns held as HQLA means exposures to governments or central banks (both Australian and foreign) that are held as high-quality liquid assets under Prudential Standard APS 210 Liquidity (APS 210). This item does not apply to ADIs that are not subject to the LCR requirements of APS 210.
A third party additional risk factor has the meaning given by paragraphs 27 to 30 of Attachment A of APS 221.
Tier 1 Capital has the meaning given in Prudential Standard APS 111 Capital Adequacy: Measurement of Capital (APS 111).
Counterparty sectors
Banking institution means an authorised deposit-taking institution within the meaning of the Banking Act 1959, as well as banking institutions in offshore jurisdictions.
Central counterparties (CCP) means clearing houses that interpose themselves between counterparties to contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer. A CCP becomes counterparty to trades with market participants through novation, an open offer system, or another legally binding arrangement. Includes QCCPs.
Insurance corporations means:
life insurance corporations registered under the Life Insurance Act 1995;
general insurance corporations registered under the Insurance Act 1973 (or by virtue of determinations made by APRA under the General Insurance Reform Act 2001);
private health insurance corporations registered under the Private Health Insurance (Prudential Supervision) Act 2015;
the Export Finance Insurance Corporation;
private sector and government-owned general and health insurance enterprises, both proprietary and mutual; and
any insurance corporation overseas.
International banking agencies and multilateral regional development banks means those entities listed in footnote 8 of APS 112.
Other counterparties includes any counterparty that is not a banking institution, insurance corporation, superannuation fund, Central or Commonwealth Government, State or Territory Government, Local Government, a central bank, a central counterparty, an SPV, international banking agencies and multilateral development banks or other financial institutions.
Other financial institutions means all entities mainly engaged in financial intermediation and the provision of auxiliary financial services, other than banking institutions, insurance corporations, superannuation funds, central banks, international banking agencies and multilateral development banks, central counterparties and SPVs. Holding companies with mainly financial corporations as their subsidiaries are also included, as are market not-for-profit institutions that mainly engage in financial intermediation or the production of auxiliary financial services.
Superannuation funds means complying funds for the purposes of the Superannuation Industry (Supervision) Act 1993, other autonomous funds established for the benefit of public sector employees and any overseas funds designed specifically for the purpose of providing a pension or other income stream on retirement.