Financial Sector (Collection of Data) determination No. 70 of 2005 Reporting Standard ARS 210.0 (2005) Statement of High Quality Liquid Assets Calculation (Cth)

Financial Sector (Collection of Data) determination No. 70 of 2005

Reporting Standard ARS 210.0 (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 210.0 (2005)

Statement of High Quality Liquid Assets Calculation
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). Under this reporting standard, an ADI that is a building society, credit union or Cairns Penny Savings & Loans Limited must report to APRA, generally on a quarterly basis, in relation to their high quality liquid assets calculation. A special service provider may also be required report, but only if APRA has determined that it is a relevant ADI for the purposes of this reporting standard.
This reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with:

Form ARF 210.0 Statement of High Quality Liquid Assets Calculation (Form ARF 210.0) and the associated instructions (all of which are attached and form part of this reporting standard); and
·Prudential Standard APS 210 Liquidity and associated guidance notes.
Purpose

Data collected in Form ARF 210.0 is used by APRA for the purpose of prudential supervision including assessing compliance with Prudential Standard APS 210 Liquidity. 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 relevant ADIs (as defined by paragraph 16).
Information required
A relevant ADI must provide APRA with the information required by Form ARF 210.0 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 relevant ADI must provide the information required by this reporting standard for each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.
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 15 days after the end of the reporting period to which the information relates.
APRA may grant an ADI 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.
Quality control
The information provided by an ADI under this reporting standard must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI. AGS 1008 ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’, issued by the Auditing and Assurances Standards Board of the Australian Accounting Research Foundation, provides guidance on the scope and nature of the review and testing required from external auditors. This review and testing must be done on an annual basis or more frequently if necessary to enable the external auditor to form an opinion on the accuracy and reliability of the data.
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.
Authorisation
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:
Accounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the accounting standard) commencing immediately before 1 January 2005.
ADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.
ADI list means the attached ADI list.
building society means an ADI whose name appears under the heading ‘Building Societies’ in the ADI list.
credit union means an ADI whose name appears under the heading ‘Credit Unions’ in the ADI list.
relevant ADI means:

(a) an ADI that is a building society, credit union or Cairns Penny Savings & Loans Limited Ltd; and
(b) an ADI that is a special service provider, if APRA has determined in writing that this reporting standard (or has previously determined that Reporting Standard ARS 210.0) should apply to the special service provider (having regard to the particular circumstances of the special service provider and whether it is necessary or desirable to obtain the information required by this reporting standard for the purposes of the prudential regulation of the special service provider or to meet the requirements for data of the Reserve Bank of Australia or the Australian Bureau of Statistics).
special service provider means an ADI whose name appears under the heading ‘Other ADIs’ in the ADI list (other than Cairns Penny Savings & Loans Limited).

If an ADI is not in the ADI list, then:

(a) if the ADI assumes or uses the expression ‘building society’ in relation to its financial business, it is taken to be a building society for the purposes of this reporting standard; and
(b) if the ADI assumes or uses the expression ‘credit union’, ‘credit society’ or ‘credit co-operative’ in relation to its financial business, it is taken to be a credit union for the purposes of this reporting standard.

APRA may in writing determine that an ADI is taken to be a building society, credit union or special service provider for the purposes of this reporting standard (even if, under paragraph 16 or 17, 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 ADI 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 210.0
Statement of High Quality Liquid Assets Calculation
Instruction Guide
This instruction guide is designed to assist ADIs in the completion of the form ‘Statement of High Quality Liquid Assets’ in accordance with the requirements of Prudential Standard APS 210 Liquidity. Information on this form will be used by APRA to obtain a liquidity profile of the reporting ADI and to calculate the ADI’s compliance with the minimum liquidity holding required by Prudential Standard APS 210 Liquidity.
Minimum liquidity requirements
The minimum liquidity requirement applicable for an ADI is calculated in accordance with Prudential Standard APS 210 Liquidity.
General directions and notes
Reporting entity
The Statement of High Quality Liquid Assets Calculation form is to be completed by Credit Unions, Cairns Penny Savings & Loans Limited, Building Societies and Special Service Providers1 on a Licensed ADI basis.
1 At APRA’s discretion
Licensed ADI
This refers to the operations of the reporting ADI on a stand-alone basis.
Reporting period
The form is to be completed as at the last day of the stated reporting quarter. Special Service Providers, Credit Unions, Cairns Penny Savings & Loans Limited, Building Societies should submit the completed form to APRA within 15 business days after the end of the relevant reporting quarter.

Unit of measurement
Special Service Providers, Building Societies, Credit Unions and Cairns Penny Savings & Loans Limited are asked to complete the form in whole Australian dollars (no 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.
Netting
Institutions are not to net asset and liability items in relation to disclosure of data required in this form unless specifically stated/instructed.
Term to maturity
Any references to term to maturity in this form refer to residual term to maturity.
Basis of preparation
The nature of the disclosure on this form may not be consistent with the data disclosed on other related forms; ARF 323.0 Statement of Financial Position (Licensed ADI) and ARF 112.2 Capital Adequacy – Off Balance Sheet Business. Notwithstanding this, the heading and line item references are consistent with these forms as much as is possible.
In completing this form unless otherwise specifically stated by Prudential Standard APS 210 Liquidity, institutions are requested to follow the basis that is used for the preparation of ARF 323.0 Statement of Financial Position (Licensed ADI) and ARF 112.2 Capital Adequacy – Off Balance Sheet Business, specifically in regard to the:
Interpretation/definition of specific asset and liability items.
Appropriate measurement basis for asset and liability items.
If additional clarification is required for specific asset and liability items in this form, reference should be made to the section “Specific instructions”, which is provided as a guide.

Specific instructions
Definition provided for categories of assets that constitute eligible high quality liquid assets

Cash and liquid assets
1.1. Notes and coins

Include Australian and foreign currency notes and coins of the reporting entity. Notes and coins in transit between any branches or offices and cash floats in ATMs of the reporting entity should be reported.

1.2. Settlement funds due from clearing houses

Include net claims on recognised clearinghouses in Australia such as the ASXCH and SFECH.
margin deposit accounts.

1.3. Settlement funds due from financial institutions
(a) RBA

Include settlement account balances due from the RBA and other central banks, as well as securities sold not delivered/security settlements.
Funds held with the Reserve Bank of Australia or any foreign central bank should also be reported in this data item.

(b) Banks

Settlement balances – Austraclear and RITS balances with banks.
Amounts owing and in the course of collection from banks in relation to the payments system.
Include settlement account balances due from banks.

(c) Other ADIs

Include settlement account balances due from other ADIs.
Settlement balances – Austraclear and RITS balances with non bank ADIs.
Amounts owing and in the course of collection from other ADIs in relation to the payments system.

1.4. Total eligible cash and liquid assets
Represents the sum of items 1.1 – 1.3.

Deposits on a call basis [Prudential Standard APS 210 Liquidity paragraph 12(d)]

2.1. Deposits on a call basis [Prudential Standard APS 210 Liquidity paragraph 12(d)]:
(a) Banks
Report the amount of deposits/money market loans placed with banks on a call, 11am or 24 hours basis. To qualify as “high quality liquid assets” in accordance with Prudential Standard APS 210 Liquidity the funds must be free from encumbrances.

(b) Other ADIs
Report the amount of deposits/money market loans placed with other ADIs on a call, 11am or 24 hours basis. To qualify as “high quality liquid assets” in accordance with Prudential Standard APS 210 Liquidity the funds must be free from encumbrances.

2.2 Total deposits/funds invested on a call basis
Represents the sum of items disclosed under point 2.1.

Securities eligible for re-purchase with the RBA [Prudential Standard APS 210 Liquidity paragraph 12(b)]
Eligible collateral for Reserve Bank market operations
The Reserve Bank announced on 7 June (Media Release 2001-12) the decision to expand the range of securities it will accept as collateral in its domestic market operations, including Australian dollar securities from a broader range of supranational institutions.
A full list of the supranational organisations whose securities are currently accepted by the Reserve Bank is provided below. A detailed list of the securities accepted is published in the electronic media (Reuters RBA35, Dow Jones 1595 and Bloomberg RBA14) and on the RBA’s website, and any future additions to the list of eligible securities will be notified on those pages.
The Bank will accept:
Securities issued by the commonwealth government;
Securities issued in Australia by the central borrowing authorities of State and Territory governments;
Australian dollar denominated securities issued by the central borrowing authorities of State and Territory governments, in euro markets and lodged in Austraclear as Euroentitlements;
Australian dollar securities of the European Investment Bank currently lodged in Austraclear to the list of eligible securities; and
Australian dollar securities issued by some supranational organisations. Decisions will be made on a case-by-case basis, but as a minimum the organisation must have a AAA credit rating.
Supranational organisations whose securities the RBA will accept as repo collateral:

Asian Development Bank (ADB);
European Bank for Reconstruction and Development (EBRD);
European Investment Bank (EIB);
Inter-American Development Bank (IADB);
International Bank for Reconstruction and Development (IBRD); and
International Finance Corporation (IFC).
Securities that are already subject to repurchase or resale agreements should not be included in this section (i.e. Securities purchased under agreements to resell and Securities sold under agreements to repurchase).

Bank bills and CD's issued by ADI's with no less than investment grade rating [Prudential Standard APS 210 Liquidity (Para 12 (c)]
Bank bills and CD's eligible for inclusion as HQLA are securities issued by an ADI counterparties that are rated at least "investment grade". Refer to Guidance Note AGN 113.3 The Standard Method Table 1 “Credit rating agencies and investment grade ratings” for further information. Do not include Bank Bonds, Floating Rate Notes (FRN's) or TCD's.
To qualify as “high quality liquid assets” in accordance with Prudential Standard APS 210 Liquidity the securities must also be free from encumbrances.
Other eligible deposits not on a call basis [Prudential Standard APS 210 Liquidity paragraph 12(d)]
Deposits invested on other than a call basis (ie term deposits) will qualify for HQLA only if the deposits are free from encumbrances and the ADI has written confirmation that the deposit is convertible into cash within a maximum of two business days. Where break costs will be applied to redeem term deposits within 2 business days, the deposits must be shown net of the break costs.
Other securities approved by APRA [Prudential Standard APS 210 Liquidity Para 12(e)] Please specify:
Other securities must have prior approval from APRA to be included in HQLA. All investments included in HQLA must be unencumbered, except where approved for a prudential purpose by APRA
Total HQLA
Represents the total of the following items 1.4; 2.2; 3.5; 4.3; 5.2; 6.3.
Less: HQLA placements by other ADI's [Prudential Standard APS 210 Liquidity paragraph 12(d)]
Note: In the calculation of HQLA as required by Prudential Standard APS 210 Liquidity, HQLA Deposits received from other ADI's must be netted against HQLA where such deposits are included in HQLA ratios being reported to APRA. Netting extends across ADI's and is not on a bilateral basis only.

8.1 HQLA deposits on a call basis placed with the reporting ADI by other ADI's [Prudential Standard APS 210 Liquidity paragraph 12(d)]. Disclose this in relation to the following:
(a) Banks

Report the amount of deposits/money market loans placed with the reporting ADI by banks on a call, 11am or 24 hours basis that are withdrawable/convertible into cash within 2 business days.

(b) Other ADIs

Report the amount of deposits/money market loans placed with the reporting ADI by other ADIs (other than banks) on a call, 11am or 24 hours basis that are withdrawable/convertible into cash within 2 business days.

8.2 Total deposits/funds placed by other ADIs on a call basis.

Represents the sum of items disclosed under point 8.1(a) and 8.1(b).

8.3 Other deposits not on a call basis placed with the reporting ADI by other ADI's [Prudential Standard APS 210 Liquidity paragraph 12(d)]
(a) Banks

Report the amount of deposits placed with the reporting ADI by banks on a basis other than at call, 11am or 24 hours, that are withdrawable/convertible into cash within 2 business days.

(b) Other ADIs

Report the amount of deposits placed with the reporting ADI by other ADIs (other than banks) on a basis other than at call, 11am or 24 hours basis that are withdrawable/convertible into cash within 2 business days.

8.4 Total other deposits placed by other ADIs not on a call basis

Represents the sum of items disclosed under point 8.3(a) and 8.3(b).

8.5 Total placements by other ADIs (ie 8.2 + 8.4)

Represents the sum of items disclosed under point 8.2 and 8.4.

8.6 HQLA placements by other ADIs in excess of HQLA deposits of the reporting ADI.

This item represents the value of item disclosed under point 8.5, less the sum of items 2.2 + 5.2. Note, this item can not be less than zero. Accordingly if the result is less than zero, zero will be displayed.

Total adjusted HQLA
Represents items 7, minus item 8.5 plus item 8.6.
Note: Item 8.6 is added back to item 7 (Total HQLA) as ‘Total placements by other ADIs’ is only deducted from the reporting ADIs HQLA, up to the level of reporting ADIs HQLA with other ADIs.
Calculation of liability base
Liabilities for the purpose of Prudential Standard APS 210 Liquidity is defined as Total Liabilities plus the value of ‘Total Shareholders Equity’, plus irrevocable commitments less eligible capital base defined in accordance with Prudential Standard APS 111 Capital Adequacy: Measurement of Capital. The following items facilitate the calculation of adjusted total liabilities base for the purpose of calculating HQLA.
Total liabilities (per the Statement of Financial Position ARF 323.0)
Disclose the figure for “Total Liabilities” per ARF 323.0 Statement of Financial Position (Licensed ADI).
Plus: Total shareholders’ equity (per the Statement of Financial Position (Licensed ADI))
Disclose the figure for ‘Total Shareholders’ Equity’ per ARF 323.0 Statement of Financial Position.
Less: capital base (item 39 per ARF 110.0 Capital Adequacy)
Disclose the figure for the ‘Total Capital Base’ per the form ARF 110.0 Capital Adequacy (Licensed ADI).
Less: HQLA placements by other ADIs (ie 8.5 - 8.6):
This amount must not be negative. Ie if the value is less than zero, then zero is to be disclosed in this field.
This amount needs to be deducted from the Liability base of the reporting ADIs, as it this value has been deducted from the reporting ADIs HQLA.
Liability base.
Represents items11 plus 12 less items 13 and 14.
Add: Off balance sheet irrevocable commitments.
For the interpretation of the items listed refer to the form and instructions for form ARF 112.2 Capital Adequacy – Off Balance Sheet Business.
Note: Undrawn formal standby facilities and Credit lines in this contexts, refers to standbys which the ADI has committed to provide to it’s customers and APRA's approved industry support arrangements only.
Do not include standbys which the reporting ADI has in place to support its operations.
Note: For the off-balance sheet category titled – “Balances available for redraw under redraw facilities of term loans”, only include those balances where the ADI has irrevocably committed to providing the redraw to the customer.
Total off balance sheet irrevocable commitments
Represents the sum of items disclosed in item 16.
Adjusted liability base
Represents the liability base per item 15 increased for the total off balance sheet irrevocable commitments disclosed in item 17.
HQLA ratio
Represents item 9 divided by item 18. Per Prudential Standard APS 210 Liquidity ADI’s must maintain a minimum HQLA at all times.
ADI's minimum targeted HQLA ratio per Liquidity Management Strategy
Report the ADI’s minimum targeted HQLA ratio as contained in its Liquidity Management Strategy.
Lowest HQLA ratio during reporting period
Report the ADI’s lowest HQLA ratio maintained during the reporting period.
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.