Banking (prudential standard) determination No. 10 of 2006 Variation of various Prudential Standards and Guidance Notes (Cth)

Banking (prudential standard) determination No. 10 of 2006

Variations to:

Prudential standard APS 111 – Capital Adequacy: Measurement of Capital

Prudential standard APS 112 – Capital Adequacy: Credit Risk

Guidance Note AGN 112.1 – Risk-weighted On-Balance Sheet Credit Exposures

Prudential standard APS 120 – Funds Management and Securitisation

Banking Act 1959

I, Charles Watts Littrell, a delegate of APRA, under subsection 11AF(3) of the Banking Act 1959 (the Act), VARY:

(a)Prudential standard APS 111 (determined on 30 May 2006 to take effect from 1 July 2006) in the manner set out in the Schedule;

(b)Prudential standard APS 112 (determined on 30 May 2006 to take effect from 1 July 2006) in the manner set out in the Schedule;

(c)Guidance Note AGN 112.1 (which forms part of Prudential standard APS 112) in the manner set out in the Schedule; and

(d)Prudential standard APS 120 (determined on 30 May 2006 to take effect from 1 July 2006) in the manner set out in the Schedule.

This instrument takes effect on the date of registration on the Federal Register of Legislative Instruments.

Dated   4 August 2006

[Signed]

Charles Littrell

Executive General Manager

Policy, Research and Statistics Division

APRA

Interpretation

In this Determination

APRA means the Australian Prudential Regulation Authority.

Note 1                    Banking (prudential standard) determination No. 4 of 2006 determined APS 111.

Note 2                    Banking (prudential standard) determination No. 5 of 2006 determined APS 112.

Note 3                    Banking (prudential standard) determination No. 6 of 2006 determined APS 120.

Schedule

Variation to Prudential standard APS 111

a.  Footnote 10 at the bottom of page 10 – insert the word “and” between the words “deducted” and “losses”.

Variation to Prudential standard APS 112

a.  Paragraph 1 – in line 4 delete the words “On-Balance” and substitute the words “Off-balance”.

Variations to Guidance Note AGN 112.1

a.  Attachment A, paragraph 30 – delete the paragraph.

b.  Attachment A, paragraph 31 – renumber “31” as “30”.

c.  Attachment A, paragraph 32 – renumber “32” as “31”.

d.  Attachment A, paragraph 33 – renumber “33” as “32”.

Variations to Prudential standard APS 120

a.  Paragraph 5 - At the end of this paragraph (after the full stop), insert a new footnote reference “2”, and below Footnote 1 insert a new Footnote 2 which reads:

“2         For the purposes of this Prudential standard and the related guidance notes, unless otherwise stated, a reference to ‘ADI’ or ‘ADIs’ includes an ADI or ADIs and its or their subsidiaries.”

b.  Paragraph 8 - in the penultimate line delete the footnote references “2” and “3” and insert new footnote references “3” and “4” respectively.

c.  Footnote 2 at the bottom of page 3 – renumber “2” as “3”.

d.  Footnote 3 at the bottom of page 3 – renumber “3” as “4”.