The Australian Prudential Regulation Authority (APRA) today released its proposed reporting requirements for authorised deposit-taking institutions (ADIs) under the new Basel II capital adequacy regime, known as the Basel II Framework (the Framework).

The proposed requirements are outlined in a discussion paper and detailed in the draft reporting standards, reporting forms and instruction guides. They deal with the calculation of minimum regulatory capital for credit risk, market risk, operational risk and, for advanced ADIs, interest rate risk in the banking book.

The majority of ADIs in Australia will be using the standardised approaches available under the Framework. The reporting requirements for these ADIs broadly replicate existing reporting requirements, with some additions in areas such as operational risk and securitisation. For ADIs accredited by APRA to adopt the advanced Basel II approaches (advanced ADIs), the majority of reporting requirements will be new.

APRA proposes to finalise and issue the reporting standards, reporting forms and instruction guides in late 2007, following the release of the full suite of finalised Basel II prudential standards. The reporting standards will come into effect at the same time as the Framework, on 1 January 2008; the first submission of data will be for the period 1 January 2008 to 31 March 2008.

Comments on the discussion paper, draft reporting standards, reporting forms and instructions are invited by 5 October 2007 and can be emailed to basel2@apra.gov.au.

All documents are available on APRA’s website at http://www.apra.gov.au/ADI/Basel-II-implementation-in-Australia.cfm.

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 approximately $2.5 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.

Media and industry inquiries only:
Stuart Snell, Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0407 250 276

All other inquiries:
APRA Contact Centre 1300 131 060