Consequential reporting changes to ARS 110.0 – Capital Adequacy

To: All authorised deposit-taking institutions
 

The Australian Prudential Regulation Authority (APRA) has released a response to submissions on proposed updates to Reporting Standard ARS 110.0 Capital Adequacy (ARS 110).

The response follows APRA’s consultation on consequential reporting changes resulting from targeted liquidity changes and Interest Rate Risk in the Banking Book (IRRBB) reporting in December 2024.

The proposed changes were to: 

• collect data on “unrealised losses for securities in the liquid asset portfolio that are not measured at fair value”;
• validate the risk-weighted assets equivalent amount of the IRRBB capital requirement in ARS 110, against the IRRBB Capital Charge value submitted in Reporting Standard ARS 117.1 Interest Rate Risk in the Banking Book (ARS 117.1); and 
• calculating Item 3.1 of Section B in ARS 110 for reporting periods ending on or after 31 March 2026.

Consultation and submissions

On 6 December 2024, APRA released a draft of ARS 110 for consultation which included the new data proposed to be collected along with a letter outlining the proposal.

APRA received no submissions in response to the consultation. In the absence of feedback, APRA intends to proceed with the proposed changes.

Finalised reporting standard and next steps

The finalised reporting standard for ARS 110 can be viewed on the APRA website.

APRA will update the APRA Connect collection in line with this proposal. APRA intends to release taxonomy artefacts and the updated APRA Connect collection in the coming weeks.

Yours sincerely,

Andy Robertson
Chief Data Officer
Technology and Data Division