The Australian Prudential Regulation Authority (APRA) has today released for consultation a discussion paper outlining its proposed changes to liquidity reporting requirements for authorised deposit-taking institutions (ADIs). The consultation package includes seven draft reporting forms and associated instructions.
APRA’s proposed changes to these reporting requirements will assist it to better monitor ADI liquidity, including monitoring compliance with the new Basel III global liquidity standards.
The proposed reporting requirements include:
detailed reports that will assist APRA to monitor compliance with the new Liquidity Coverage Ratio and the Net Stable Funding Ratio. These global liquidity standards will be applied only to Australia’s larger and more complex ADIs;
minor amendments to the reports that APRA currently receives from credit unions and building societies; and
- standardised balance sheet maturity information that will allow APRA to better understand the funding and liquidity situation of the industry.
APRA Chairman Dr John Laker said: ‘This is a significant expansion to APRA’s data collection on ADI liquidity, consistent with the importance APRA places on the sound management of ADI liquidity risk.’
Consultation on the proposed new reporting requirements closes on 8 February 2013, and the final liquidity reporting standards are expected to be determined and released in the second half of 2013.
The requirements in the final standards are expected to take effect for the reporting period ending 31 December 2013, meaning that ADIs will complete their first submission on the new reporting forms in January 2014.
The discussion paper and draft reporting forms and instructions can be found on the APRA website at: www.apra.gov.au/adi/PrudentialFramework/Pages/Liquidity-reporting-requirements-for-ADIs-November-2012.aspx
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding $4.2 trillion in assets for almost 23 million Australian depositors, policyholders and superannuation fund members.
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