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APRA consults on prudential reporting requirements for Basel II enhancements

Wednesday 5 May 2010


The Australian Prudential Regulation Authority (APRA) has released for consultation a discussion paper and proposed amendments to relevant prudential reporting standards and forms in relation to proposals to enhance the Basel II Framework in Australia.

In December 2009, APRA released a package of proposed changes to prudential standards and prudential practice guides (PPGs) for authorised deposit-taking institutions (ADIs) to reflect enhancements to the Basel II Framework adopted by the Basel Committee on Banking Supervision (BCBS) in July last year. The Basel II enhancements are part of a broader work program undertaken by the BCBS to strengthen regulatory capital, risk management and supervision requirements.

In its December 2009 package, APRA indicated that the Basel II enhancements will require changes to APRA’s reporting standards and reporting forms for both ADIs and consolidated banking groups. The consultation package released today addresses proposed changes to reporting requirements for the following prudential standards:

  • Prudential Standard APS 111 Capital Adequacy: Measurement of Capital (APS 111);
  • Prudential Standard APS 116 Capital Adequacy: Market Risk (APS 116); and
  • Prudential Standard APS 120 Securitisation (APS 120).

The discussion paper and the associated draft reporting standards and reporting forms are available on APRA’s website. 

Written submissions in relation to the consultation package should be submitted by 1 June 2010.

Subject to consultation, APRA intends to issue final reporting standards and reporting forms in mid 2010. These will accompany the release of the associated final prudential standards and PPGs and are expected to be implemented from 1 January 2011. The first submission of quarterly data required from ADIs will relate to the reporting period ending 31 March 2011.

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, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $6 trillion in assets for Australian depositors, policyholders and superannuation fund members.