The Australian Prudential Regulation Authority (APRA) today released its 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 reporting requirements have been finalised after consultation with industry and other interested parties. They deal with the calculation of minimum regulatory capital for credit risk, market risk, operational risk and, for ADIs approved by APRA to use the Basel II advanced approaches, interest rate risk in the banking book.

APRA is also releasing a response paper that addresses issues raised in submissions on the draft reporting proposals put out in September 2007.

The majority of ADIs in Australia are using the standardised approaches available under the Framework. The reporting requirements for these ADIs broadly replicate the previous capital reporting requirements, with some additions in areas such as operational risk and securitisation. For ADIs approved by APRA to adopt the Basel II advanced approaches, the bulk of the reporting requirements are new.

The full suite of Basel II reporting standards comes into effect on 1 April 2008 and the first submission of data will cover the period 1 January 2008 to 31 March 2008.

The suite of reporting standards, forms and instructions and the response paper are available on APRA’s website at: 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 $3 trillion in assets for 21 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.