• APRA proposes revisions to reporting under ARS 210

Last week APRA released a consultation paper on ARS 210 – Liquidity, in order to align liquidity reporting with the revised prudential standards APS 210 – Liquidity.

The revisions provide more details around new reporting of the Net Stable Funding Ratio, impacting the 15 locally incorporated ADIs currently reporting LCR to APRA, and the proposed streamlining of the existing APRA reporting forms impacting all ADIs.

Reporting Standard ARS 210 - Liquidity

Following the finalisation of the revised APS 210 – Liquidity in December 2016, APRA issued a consultation paper on 24 March 2017, closing 5 May 2017, proposing to revise the required reporting under ARS 210.0 so it aligns with the revised prudential standard.

The revised reporting requirements are proposed to take effect the same time as the revised prudential standard, that is, 1 January 2018.

Net Stable Funding Ratio (NSFR)

  • NSFR is only applicable to locally incorporated ADIs subject to LCR reporting. There are currently only 15 ADIs subject to LCR in Australia.
  • A new form ARF 210.6 is required to be completed by these ADIs.
  • ADIs subject to NSFR will complete an excel version of the proposed NSFR form in place of the Basel QIS NSFR form for the quarter end March 2017 on a best endeavour basis.
  • No additional reporting required for out of scope ADIs.

Revision to existing liquidity reporting forms

The objective is to better align with revised prudential standard and to streamline current statistical reporting. This is applicable to all ADIs

  • ARF 210.3 Balance Sheet Maturity & ARF 210.4 Balance Sheet Forecast have been revised significantly with material consolidation of the current maturity buckets and to better align reporting with the Basel Committee’s monitoring requirements.
  • ARF 210.5 Daily liquidity report – updated to close information gaps revealed during the liquidity reporting “fire drills”.

Reporting under APS 310

Liquidity reporting forms are currently not specified within the scope of APS 310 audits. Due to their importance and to promote appropriate discipline APRA is proposing incorporating these into the scope of APS 310. The timing of the audit requirements have not yet been communicated but it is unlikely to be 30 June 2017.

For more details on the proposed changes please refer:

www.apra.gov.au/liquidity

If you need assistance with interpreting how these changes may affect you, please get in contact with your usual Grant Thornton advisor or with Alison Sheridan below.