Lease Finance

Objective of this Reporting Standard

This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 and outlines the overall requirements for the provision of information to APRA relating to an authorised deposit-taking institution’s lease finance. It should be read in conjunction with:

• Reporting Form ARF 393.0.1 Lease Finance in NSW;
• Reporting Form ARF 393.0.2 Lease Finance in VIC;
• Reporting Form ARF 393.0.3 Lease Finance in QLD;
• Reporting Form ARF 393.0.4 Lease Finance in SA;
• Reporting Form ARF 393.0.5 Lease Finance in WA;
• Reporting Form ARF 393.0.6 Lease Finance in TAS;
• Reporting Form ARF 393.0.7 Lease Finance in the NT; and
• Reporting Form ARF 393.0.8 Lease Finance in the ACT,

and the associated instructions (all of which are attached and form part of this Reporting Standard).

Authority

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

Purpose

2. Data collected in Reporting Forms ARF 393.0.1 to 393.0.8 (ARF 393.0.1 to 393.0.8) is used by APRA for the purpose of prudential supervision. It may also be used by the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS).

Application and commencement

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

4. This Reporting Standard commences on 1 April 2018.

Information required

5. An ADI that is an Australian-owned bank, a foreign subsidiary bank or a branch of a foreign bank must complete each of ARF 393.0.1 to 393.0.8 on a domestic books basis for each reporting period.

6. An ADI that is a building society, a credit union or Cairns Penny Savings & Loans Limited must complete each of ARF 393.0.1 to 393.0.8 on a licensed ADI basis for each reporting period.

Form and method of submission

7. 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

8. Subject to paragraph 9, an ADI to which this Reporting Standard applies must provide the information required by this Reporting Standard for each calendar month.

9. 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

(c) the requirements of the RBA or the ABS.

10. The information required by this Reporting Standard must be provided to APRA by 10 business days after the end of the reporting period to which it relates.

11. 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.

Authorisation

12. When an officer of an ADI submits information under this Reporting Standard using the D2A application, or other method notified by APRA, it will be necessary for the officer to digitally sign the relevant information using a digital certificate acceptable to APRA.

Minor alterations to forms and instructions

13. 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.

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

Interpretation

15. In this Reporting Standard:

AASB has the meaning in section 9 of the Corporations Act 2001.

ADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.

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.

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.

business days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.

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 ADIs.

credit union means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business and includes Cairns Penny Savings & Loans Limited.

due date means the relevant due date under paragraph 10 or, if applicable, paragraph 11.

foreign ADI has the meaning in section 5 of the Banking Act 1959.

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.

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 but does not include Cairns Penny Savings & Loans Limited.

reporting period means a period mentioned in paragraph 8 or, if applicable, paragraph 9.

stake means a stake determined under the Financial Sector (Shareholdings) Act 1998, as if the only associates that were taken into account under paragraph (b) of subclause 10(1) of the Schedule to that Act were those set out in paragraphs (h), (j) and (l) of subclause 4(1).

16. Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.