Financial Sector (Collection of Data) determination No. 102 of 2005 Reporting Standard ARS 395.0 (2005) Business Finance (Cth)

Financial Sector (Collection of Data) determination No. 102 of 2005

Reporting Standard ARS 395.0 (2005)

Financial Sector (Collection of Data) Act 2001

I, Wayne Stephen Byres, a delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (‘the Act’) MAKE the reporting standard set out in the Schedule, which applies to the financial sector entities referred to in paragraph 2 of the reporting standard.
Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply those financial sector entities on the date of registration on the Federal Register of Legislative Instruments.
Dated 27 July 2005
[Signed]
Wayne Byres
Executive General Manager
Diversified Institutions Division
APRA
Interpretation

In this Notice

APRA means the Australian Prudential Regulation Authority.

Schedule

Reporting Standard ARS 395.0 (2005)

Business Finance
Objective of this reporting standard
This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires all banks, including banks that are foreign ADIs operating in Australia through branch operations, to report to APRA, generally on a quarterly basis, in relation to their business finance.
This reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with:
·Form ARF 395.0 Business Finance Statistics (Form ARF 395.0) and the associated instructions (both of which are attached and form part of this reporting standard).

Purpose

Data collected in Form ARF 395.0 is used by APRA for the purpose of prudential supervision. It may also be used by the Reserve Bank of Australia and the Australian Bureau of Statistics.
Application and commencement
This reporting standard will apply, from the date of registration on the Federal Register of Legislative Instruments, to all banks.
Information required
A bank must provide APRA with the information required by Form ARF 395.0 for each reporting period.
Forms and method of submission
The information required by this reporting standard must be given to APRA either:
(a)in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or
(b)manually completed on paper, which must be faxed or mailed to APRA’s head office.
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Reporting periods and due dates
Subject to paragraph 6, a bank must provide the information required by this reporting standard in respect of each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the bank.
APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular ADI, to require it to provide the information required by this reporting standard more frequently, or less frequently, having regard to:
(a)the particular circumstances of the ADI;
(b)the extent to which the information is required for the purposes of the prudential supervision of the ADI; and
(c)the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics.
The information required by this reporting standard must be provided to APRA by 20 business days after the end of the reporting period to which it relates.
APRA may grant a bank an extension of a due date in writing in which case the new due date for the provision of the information will be the date on the notice of extension.
Authorisation
All information provided by an ADI under this reporting standard must be subject to processes and controls developed by the ADI for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the ADI to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.
If an ADI submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the ADI to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the ADI who have authority from the ADI to transmit the data to APRA.
If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:

(a) the Principal Executive Officer of the ADI; or
(b) the Chief Financial Officer of the ADI (whatever his or her official title may be).
Minor alterations to forms and instructions

APRA may make minor variations to:

(a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or
(b) the instructions to a form, to clarify their application to the form
without changing any substantive requirement in the form or instructions.

If APRA makes such a variation it must notify in writing each ADI that is required to report under this reporting standard.
Transitional
If the due date for lodgement in respect of a reporting period is a day after the date of registration of this reporting standard on the Federal Register of Legislative Instruments, an ADI must report under this reporting standard in respect of that reporting period (including where the reporting period ended before the date of registration).
Interpretation - classifications of ADIs
In this reporting standard:
ADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.
ADI list means the attached ADI list
bank means an ADI whose name appears under the heading ‘Australian-owned Banks’, ‘Foreign Subsidiary Banks’ or ‘Branches of Foreign Banks’ in the ADI list.
foreign ADI means an ADI that is not incorporated in Australia.
If an ADI is not in the ADI list, then if the ADI assumes or uses the word ‘bank’ in relation to its financial business, it is taken to be a bank for the purposes of this reporting standard.
APRA may in writing determine that an ADI is taken to be a bank for the purposes of this reporting standard (even if, under paragraph 15 or 16, it comes within a different classification).
Interpretation - other definitions
In this reporting standard:
business days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.
Principal Executive Officer means the principal executive officer of the bank for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the entity.
reporting period means a reporting period under paragraph 5 or, if applicable, paragraph 6.

The ADI list
Australian-owned Banks

Adelaide Bank Limited
AMP Bank Limited
Australia and New Zealand Banking Group Limited
Bank of Queensland Limited
Bendigo Bank Limited
Commonwealth Bank of Australia
Commonwealth Development Bank of Australia Limited (a subsidiary of Commonwealth Bank of Australia)
Elders Rural Bank Limited
Macquarie Bank Limited
Members Equity Bank Pty Limited
National Australia Bank Limited
St George Bank Limited
Suncorp-Metway Limited
Westpac Banking Corporation
Foreign Subsidiary Banks
Arab Bank Australia Limited
Bank of Cyprus Australia Pty Limited
BankWest (the trading name of Bank of Western Australia Limited, a foreign subsidiary bank following its sale to Bank of Scotland in December 1995)
Citibank Pty Limited (a subsidiary of Citibank N.A.)
HSBC Bank Australia Limited
ING Bank (Australia) Limited
Investec Bank (Australia) Limited
Laiki Bank (Australia) Limited
NM Rothschild & Sons (Australia) Limited
Rabobank Australia Limited (a subsidiary of Rabobank Nederland from October 1994)
Branches of Foreign Banks
ABN AMRO Bank N.V.
Bank of America, National Association
Bank of China (subject to depositor protection provisions of the Banking Act 1959)
Bank of Tokyo-Mitsubishi, Ltd
Barclays Capital (the trading name of Barclays Bank plc)
BNP Paribas
Citibank N.A.
Credit Suisse
Deutsche Bank AG
HSBC Bank plc
ING Bank NV
JPMorgan Chase Bank, National Association
Mizuho Corporate Bank, Ltd
Oversea-Chinese Banking Corporation Limited
Rabobank Nederland (the trading name of Co-operative Central Raiffeisen-Boerenleenbank B.A.)
Royal Bank of Canada
Société Générale
Standard Chartered Bank
State Bank of India
State Street Bank and Trust Company
The International Commercial Bank of China
The Royal Bank of Scotland Plc
The Toronto-Dominion Bank
Taiwan Business Bank
UBS AG
United Overseas Bank Limited
WestLB AG
Building Societies
ABS Building Society Ltd
B & E Ltd
Greater Building Society Ltd
Heritage Building Society Limited
Home Building Society Ltd
Hume Building Society Ltd
IMB Ltd
Lifeplan Australia Building Society Limited
Mackay Permanent Building Society Ltd
Maitland Mutual Building Society Limited
Newcastle Permanent Building Society Ltd
Pioneer Permanent Building Society Limited
The Rock Building Society Limited
Wide Bay Australia Ltd
Credit Unions
Amcor Credit Co-operative Limited
AMP Employees' & Agents Credit Union Limited
Austral Credit Union Limited
Australian Central Credit Union Limited
Australian Defence Credit Union Ltd
Australian National Credit Union Limited
AWA Credit Union Limited
Bananacoast Community Credit Union Ltd
Bankstown City Credit Union Ltd
Berrima District Credit Union Ltd
Big River Credit Union Ltd
Big Sky Credit Union Ltd
Blue Mountains and Riverlands Community Credit Union Ltd
Broadway Credit Union Ltd
Calare Credit Union Ltd
Capital Credit Union Ltd
Capricornia Credit Union Ltd
Carboy (SA) Credit Union Limited
Central Murray Credit Union Limited
Central West Credit Union Limited
Circle Credit Co-operative Limited
Coastline Credit Union Limited
Collie Miners Credit Union Ltd
Combined Australian Petroleum Employees' Credit Union Ltd
Community Alliance Credit Union Limited
Community First Credit Union Limited
Companion Credit Union Limited
Comtax Credit Union Limited
Connect Credit Union of Tasmania Limited
Country First Credit Union Ltd
CPS Credit Union (SA) Ltd
CPS Credit Union Co-operative (ACT) Limited
Credit Union Australia Ltd
Credit Union Home Loans Australia Limited
Credit Union Incitec Pivot Limited
Croatian Community Credit Union Limited
CSR and Rinker Employees Credit Union Limited
Dairy Farmers Credit Union Ltd
Dana Employees Credit Union
Defence Force Credit Union Limited
Discovery Credit Union Ltd
Dnister Ukrainian Credit Co-operative Limited
ELCOM Credit Union Ltd
Electricity Credit Union Ltd
Encompass Credit Union Limited
Ericsson Employees Credit Co-operative Limited
Esso Employees' Credit Union Ltd
Eurobodalla Credit Union Ltd
Family First Credit Union Limited
Fire Brigades Employees' Credit Union Limited
Fire Service Credit Union Limited
Firefighters & Affiliates Credit Co-operative Limited
First Pacific Credit Union Limited
Fitzroy & Carlton Community Credit Co-operative Limited
Flying Horse Credit Union Co-operative Limited
Ford Co-operative Credit Society Limited
Gateway Credit Union Ltd
Geelong & District Credit Co-operative Society Limited
GMH (Employees) Q.W.L. Credit Co-operative Limited
Goldfields Credit Union Ltd
Gosford City Credit Union Ltd
Goulburn Murray Credit Union Co-operative Limited
H.M.C. Staff Credit Union Ltd
Heritage Isle Credit Union Limited
Hibernian Credit Union Limited
Holiday Coast Credit Union Ltd
Horizon Credit Union Ltd
Hoverla Ukrainian Credit Co-operative Ltd
Hunter Mutual Limited
Hunter United Employees' Credit Union Limited
Industries Mutual Credit Union Limited
Intech Credit Union Limited
Island State Credit Union Ltd
Karpaty Ukrainian Credit Union Limited
La Trobe Country Credit Co-operative Limited
La Trobe University Credit Union Co-operative Limited
Laboratories Credit Union Ltd
Latvian Australian Credit Co-operative Society Limited
Lithuanian Co-operative Society (Talka) Limited
Lysaght Credit Union Ltd
M.S.B. Credit Union Limited
MacArthur Credit Union Ltd
Macaulay Community Credit Co-operative Limited
Macquarie Credit Union Limited
Maleny and District Community Credit Union Limited
Manly Warringah Credit Union Ltd
Maritime Workers of Australia Credit Union Ltd
Maroondah Credit Union Ltd
MECU Limited
Media Credit Union Queensland Ltd
Melbourne University Credit Union Limited
Memberfirst Credit Union Limited
N.R.M.A. Employees' Credit Union Ltd
NACOS Credit Union Limited
New England Credit Union Ltd
Newcom Colliery Employees' Credit Union Ltd
North East Credit Union Co-operative Limited
Northern Inland Credit Union Ltd
Nova Credit Union Limited
NSW Teachers Credit Union Ltd
Old Gold Credit Union Co-operative Limited
Orana Credit Union Ltd
Orange Credit Union Limited
Phoenix (NSW) Credit Union Ltd
Pinnacle Credit Union Limited
Plenty Credit Co-operative Limited
Police & Nurses Credit Society Limited
Police Association Credit Co-operative Limited
Police Credit Union Limited
Polish Community Credit Union Ltd
Power Credit Union Limited
Powerstate Credit Union Ltd
Prospect Credit Union Limited
Pulse Credit Union Limited
Qantas Staff Credit Union Limited
Queensland Community Credit Union Limited
Queensland Country Credit Union Ltd
Queensland Police Credit Union Limited
Queensland Professional Credit Union Ltd
Queensland Teachers' Credit Union Limited
Queenslanders Credit Union Limited
RACV Credit Union Limited
Railways Credit Union Limited
Randwick Credit Union Limited
RegionalOne Credit Union Limited
Reliance Credit Union Ltd
Resources Credit Union Limited
RTA Staff Credit Union Limited
Satisfac Direct Credit Union Limited
Savings and Loans Credit Union (S.A.) Ltd
Security Credit Union Ltd
Select Credit Union Ltd
Service One Credit Union Ltd
SGE Credit Union Ltd
Shell Employees' Credit Union Limited
Shoalhaven Paper Mill Employee's Credit Union Ltd
South West Slopes Credit Union Ltd
Southern Cross Credit Union Limited
South-West Credit Union Co-operative Limited
St Mary's Swan Hill Co-operative Credit Society Limited
St Patrick's Mentone Co-operative Credit Society Limited
Statewest Credit Society Limited
Sutherland Credit Union Ltd
Sutherland Shire Council Employees' Credit Union Ltd
Sydney Credit Union Ltd
TAB Credit Union Limited
Tartan Credit Union Ltd
The Broken Hill Community Credit Union Ltd
The Gympie Credit Union Ltd
The Police Department Employees' Credit Union Limited
The Summerland Credit Union Limited
The TAFE and Community Credit Union Limited
The University Credit Society Limited
Traditional Credit Union Limited
TransComm Credit Co-operative Limited
Uni Credit Union Ltd
United Credit Union Limited
Victoria Teachers Credit Union Limited
Wagga Mutual Credit Union Ltd
Warwick Credit Union Ltd
WAW Credit Union Co-operative Limited
Westax Credit Society Ltd
Western City Credit Union Ltd
Woolworths/Safeway Employees' Credit Co-operative Limited
Wyong Council Credit Union Ltd
Yennora Credit Union Ltd
Specialist Credit Card Institutions (SCCIs)
Foreign-owned SCCIs
GE Capital Finance Australia
GE Finance Australasia Pty Ltd
Locally Incorporated SCCIs
MoneySwitch Limited
Other ADIs
These companies are run by industry bodies and provide services (e.g. payments clearing) to member building societies and credit unions.
Australian Settlements Limited
Credit Union Services Corporation (Australia) Limited
Creditlink Services Limited
One ADI that provides general banking services which does not fall into the other categories.
Cairns Penny Savings & Loans Limited

Reporting Form ARF 395.0
Business Finance Statistics
Instruction Guide
General directions and notes
Reporting entity
The Business Finance Statistics form is to be completed by all locally incorporated banks and Foreign ADIs on a Domestic Books basis.
The Domestic books of the locally incorporated banks and Foreign ADI relates to the Australian books of the Australian ADI and has the following scope:
Is an unconsolidated report of the Australian licensed ADI's operations/transactions that are booked inside Australia.
Exclude offshore branches of the Australian licensed ADI from this reporting unit.
Exclude offshore banking units based overseas from this reporting unit.
Do not consolidate Australian and offshore controlled entities or associated entities that are not ADIs.
Include Australian based offshore banking units of the licensed ADI.
Include transactions with non-residents recorded on Australian books
Reporting period
The form is to be completed as at the last day of the stated reporting quarter. Locally incorporated banks and Foreign ADIs should submit the completed form to APRA within 20 business days after the end of the relevant reporting quarter.
Unit of measurement
Banks are asked to complete the form in millions of Australian dollars rounded to one decimal place.
Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 1012 ‘Foreign Currency Translation’.
The general requirements of AASB 1012 for translation are:

Foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date.
Other items outstanding at the reporting date must not be retranslated subsequent to initial recognition of the transaction.
Monetary items are defined to mean money held and assets and liabilities that are to be received or paid in fixed or determinable amounts of money.
Monetary items arising under foreign currency derivative contracts at the reporting date must be translated as follows:

Where the exchange rate is fixed in the contract, at that fixed exchange rate; and
Where the exchange rate varies, at the spot rate at the reporting date.
Basis of preparation
Unless otherwise specifically stated, institutions are to comply with Australian accounting standards regarding the measurement of asset, liability and equity items.

Specific instructions
This quarterly collection of statistics on lending to business covers:
loans and bills outstanding classified into the following size tiers:
under $100,000;
$100,000 to less than $500,000;
$500,000 to less than $2 million; and
$2 million and over;
within each size tier, loans and bills outstanding classified by interest rate (Sections A, B and C);
within each size tier, loans and bills outstanding classified by industry of borrower (Section D);
new credit approvals to business classified by size and by purpose (Section E); and
fees charged on loans and bills outstanding to business customers (for which banks are required to attach a schedule of fees each quarter).
The totals of Sections A, B and C should sum to the totals shown in Section D.
Where a customer has more than one credit facility, each facility should be reported separately, by size and by interest rate. Similarly, where there is more than one parcel of bills issued under a particular facility (with different maturities and yields), each parcel should be reported separately, by size and by interest rate.
Sections A, B & C - Impaired loans (& bills)
In this form, report impaired loans - i.e. non-accrual and restructured loans - net of specific provisions in the lowest interest rate tier of Sections A, B and C, and as an addendum item as shown on the form.
Section A – Variable interest rate loans
Variable-rate loans include facilities where the interest rate may be changed at any time during the term of the loan. Typically they comprise:
loans priced off banks' published business indicator loan rates such as overdrafts and fully drawn loans.
business "special offers" where the rate charged is initially fixed or capped for a limited period, but is later reset in terms of the published indicator rate.
The interest rate charged to the borrower (i.e. the indicator or reference rate plus a margin for credit risk) should be reported.
Section B – Fixed interest rate loans
Fixed-rate loans include facilities where the interest rate remains unchanged for the full term of the loan. The interest rate charged to the borrower (including a margin for credit risk) should be reported.
Section C - Bills outstanding
Bills outstanding include acceptance and endorsement facilities. The rate reported should equate to the annual cost to the customer of a bill. It should comprise the bill discount rate expressed as annual rate, plus all fees - other than establishment fees - charged for providing the facility, also expressed as an annual percentage of the bills' face value. Where the discount rate on a bill is not known, an estimate based on prevailing market rates should be used. Bill fees include acceptance or endorsement fees, facility fees, line fees, activation fees, usage fees, rollover fees and handling fees.
In addition to acceptance and endorsement facilities, loans priced off money market reference rates such as cash and bank bill rates should be included in Section C. Typically, the interest rate on these loans is reset periodically in line with changes in the prevailing reference rate. The interest rate charged to the borrower (including a margin for credit risk) should be reported. As an addendum item, report the total value of these funded loans for each size category.
Section D - Total credit outstanding
The borrower categories are based on the Australian and New Zealand Standard Industrial Classification (ANZSIC) groups of industries:

Agriculture, forestry, and fishing;
Mining;
Manufacturing;
Construction;
Wholesale trade; retail trade; and transport and storage are combined;
Finance and insurance; and
All other industries comprises the ANZSIC groups: electricity, gas and water supply; accommodation, cafes and restaurants; communication services; property and business services; government administration and defence; education; health and community services; cultural and recreational services; and personal and other services.
The complete ANZSIC listing is an ABS publication (Catalogue No. 1292.0).
Section E - New credit approvals
Approvals in Section E should match data on new and increased facilities to business reported in the ABS Commercial Finance and Lease Finance returns. Note that quarterly approvals data is sought (i.e. an aggregation of the relevant monthly ABS returns).
The following ABS purpose codes for commitments under fixed loan facilities should be used:
Construction finance (320 to 327);
Purchase of real property (329 to 337);
Wholesale finance (340);
Purchase of plant and equipment (341 to 343);
Refinancing (348);
Other (345, 346 and 349).
Commitments under Revolving Credit Facilities need to reconcile with Item 390 in the Commercial Finance return.
For lease finance show the total value of goods financed under new lease commitments for both finance and operating leases (Items 456 and 556 in the Lease Finance return).
Schedule of fees
One aim of the return is to measure the total cost of business credit. To facilitate this, banks should attach to the return each quarter a schedule of all bank fees charged to business customers on each of variable rate loans, fixed rate loans, bill acceptances and bill endorsements. The schedule should include the following basic information:
the type of facility on which the fee is charged (i.e. overdrafts, term loans etc);
the fee charged, generally expressed in dollars or as a percentage of the size of the facility. Any differences in fees for loans or bills of different sizes should be shown. Where no fixed or set fee exists, show the range typically charged; and
how frequently the fee is charged (i.e. quarterly, half yearly etc.).
Show all fees charged, even when those fees might be waived for certain customers.
Fees typically charged on loans and bills include:
application, approval or establishment fees charged when the facility is established or the size of the facility increased;
loan administration fees, also known as loan service, line or facility fees;
commitment and unused limit fees levied on the undrawn portion of a facility; and
certain specific fees applying to bills including acceptance and endorsement fees (i.e. risk margins), activation fees, usage fees, rollover fees and handling fees.
Note on References to Accounting Standards
This Note is about references in these instructions to an accounting standard or accounting standards, e.g. where the instructions say that something must be done in accordance with a particular AASB or international accounting standard, or must be done in accordance with the accounting standards (however described) generally.
Where you see such a reference, you must read it as meaning the version of the accounting standard, or versions of the accounting standards, applying to reporting periods (within the meaning of the accounting standards) beginning immediately before 1 January 2005.
Accordingly, the new AASB standards for 2005 are not to be applied.
Similarly, a reference to principles or conventions (however described) governing an accounting procedure or treatment shall be taken to refer to principles or conventions applicable in relation to reporting periods (within the meaning of the accounting standards) that began immediately before 1 January 2005.