Financial Sector (Collection of Data) (reporting standard) determination No. 6 of 2006 Reporting Standard ARS 210.0 Statement of High Quality Liquid Assets Calculation (Licensed ADI) (Cth)
Financial Sector (Collection of Data) (reporting standard) determination No. 6 of 2006
Reporting standard ARS 210.0 Statement of High Quality Liquid Assets Calculation (Licensed ADI)
Financial Sector (Collection of Data) Act 2001
I, Charles Watts Littrell, a delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901:
REVOKE the Reporting Standard ARS 210.0 (2005) Statement of High Quality Liquid Assets Calculation (Licensed ADI); and
DETERMINE the Reporting standard ARS 210.0 Statement of High Quality Liquid Assets Calculation (Licensed ADI) in the form 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 to those financial sector entities on the later of 1 July 2006 and the date of registration on the Federal Register of Legislative Instruments.
Dated 26 June 2006
[signed]
Charles Littrell
Executive General Manager
Policy, Research and Statistics
APRA
Interpretation
In this Determination
APRA means the Australian Prudential Regulation Authority.
Schedule
Reporting standard ARS 210.0 Statement of High Quality Liquid Assets Calculation (Licensed ADI) comprises 30 pages commencing on the next page.
Reporting Standard ARS 210.0
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. Under this reporting standard, an authorised deposit-taking institution 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 authorised deposit-taking institution 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 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 Statement of High Quality Liquid Assets Calculation (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
This reporting standard applies to all relevant authorised deposit-taking institutions (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 Assurance Standards Board 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
An ADI must report under the old reporting standard in respect of a transitional reporting period. For these purposes:
old reporting standard means the reporting standard revoked in the determination making this reporting standard (being the reporting standard which this reporting standard replaces).
transitional reporting period means a reporting period under the old reporting standard:
(a)which ended before the date of revocation of the old reporting standard; and
(b)in relation to which the ADI was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.
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.
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 China (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)
Citigroup Pty Limited
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 UFJ, Ltd
Barclays Capital (the trading name of Barclays Bank plc)
BNP Paribas
Citibank N.A.
Credit Suisse
Deutsche Bank AG
HBOS Treasury Services plc
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
Alliance One Credit Union Ltd
AMP Employees' & Agents Credit Union Limited
Austral Credit Union Limited
Australian Central Credit Union Limited
Australian Country Credit Union Ltd (trading as Reliance Credit Union)
Australian Defence Credit Union Ltd
AWA Credit Union Limited
Bananacoast Community Credit Union Ltd
Bankstown City Credit Union Ltd
Berrima District Credit Union Ltd
Big Sky Credit Union Ltd
Blue Mountains and Riverlands Community Credit Union Ltd
Broadway Credit Union Ltd
Calare Credit Union Ltd
CAPE Credit Union Limited
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
Community Alliance Credit Union Limited
Community CPS Australia 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 Co-operative (ACT) Limited
Credit Union Australia Ltd
Credit Union Incitec Pivot Limited
Croatian Community Credit Union Limited
CSR and Rinker Employees Credit Union Limited
Dairy Farmers Credit Union Ltd
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 Option Credit Union Limited
First Pacific Credit Union Limited
Fitzroy & Carlton Community Credit 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
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
Melbourne University Credit Union Limited
Memberfirst Credit Union Limited
New England Credit Union Ltd
Newcom Colliery Employees' Credit Union Ltd
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
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
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
Railways Credit Union Limited
RegionalOne Credit Union Limited
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 Limited
Shell Employees' Credit Union Limited
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
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 (eg payments clearing) to member building societies and credit unions.
Australian Settlements Limited
Credit Union Services Corporation (Australia) Limited
Indue Ltd
One ADI that provides general banking services which does not fall into the other categories.
Cairns Penny Savings & Loans Limited
Authorised Non-Operating Holding Companies
HBOS Australia Pty Ltd
Reporting Form ARF 210.0
Statement of High Quality Liquid Assets Calculation
Instruction Guide
This instruction guide is designed to assist authorised deposit-taking institutions (ADIs) in the completion of the form ‘Statement of High Quality Liquid Assets’ in accordance with the requirements of Prudential Standard APS 210 Liquidity (APS 210). 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 APS 210.
Minimum liquidity requirements
The minimum liquidity requirement applicable for an ADI is calculated in accordance with APS 210.
General directions and notes
Reporting entity
This form is to be completed by Credit Unions, Cairns Penny Savings & Loans Limited, Building Societies and Special Service Providers (SSPs)1 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.
Securitisation deconsolidation principle
Except where stated otherwise on this form, reporting entities must treat any securitisation program special purpose vehicles (SPVs) in which the ADI (or a member of its consolidated group) participates in accordance with APRA’s clean sale and separation requirements as non-consolidated independent third parties. As a result, for reporting purposes all assets, liabilities, revenues and expenses of these SPVs must be excluded from the ADI’s reported amounts. Where relevant, report on this form any exposure to or other transaction between the ADI and any such SPV as if such transaction was conducted with an independent third party, regardless of whether the SPV or its assets is consolidated for accounting purposes.
APRA's clean sale and separation requirements are set out in APS 120 Funds Management and Securitisation and related Guidance Notes AGN 120.3 Purchase and Supply of Assets (including Securities Issued by SPVs) and AGN 120.1 Disclosure and Separation. Whenever the clean sale and separation requirements are not met, all the assets, liabilities, revenues and expenses of the SPV are to be consolidated with the ADI’s reported amounts.
Reporting period
The form is to be completed as at the last day of the stated reporting quarter. SSPs, 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
SSPs, 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 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).
The general requirements of AASB 121 for translation are:
foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date;2
2 Monetary items are defined to mean units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency. Spot rate means the exchange rate for immediate delivery.
foreign currency non-monetary items that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction;3
3 Examples of non-monetary items include amounts prepaid for goods and services (e.g. prepaid rent); goodwill; intangible assets; physical assets; and provisions that are to be settled by the delivery of a non-monetary asset.
foreign currency non-monetary items that are measured at fair value will be translated at the exchange rate at the date when fair value was determined.
Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 Financial Instruments: Recognition and Measurement (AASB 139). However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.
For APRA purposes equity items must be translated using the foreign currency exchange rate at the date of investment or acquisition. Post acquisition changes in equity are required to be translated on the date of the movement.
As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.
Exchange differences should be recognised in profit and loss in the period which they arise. For foreign currency derivatives, the exchange differences would be recognised immediately in profit and loss if the hedging instrument is a fair value hedge. For derivatives used in a cash flow hedge, the exchange differences should be recognised directly in equity.
The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss; and
translation of financial reports of foreign operations.
A foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.
·Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.
·Translation of financial reports should otherwise follow the requirements in AASB 121.
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) (ARF 323.0) and ARF 112.2 Capital Adequacy – Off Balance Sheet Business (ARF 112.2). 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 APS 210, institutions are requested to follow the basis that is used for the preparation of ARF 323.0 and ARF 112.2, specifically in regard to the:
interpretation/definition of specific asset and liability items; and
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
1.1Notes 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 Automated Teller Machines (ATMs) of the reporting entity should be reported.
1.2Settlement funds due from clearing houses
Include:
net claims on recognised clearing houses in Australia such as the Australian Stock Exchange Clearing House (ASXCH) and the Sydney Futures Exchange Clearing House (SFECH); and
margin deposit accounts.
1.3Settlement funds due from financial institutions
(a) The Reserve Bank of Australia (RBA)
Include:
settlement account balances due from the RBA and other central banks, as well as securities sold not delivered/security settlements; and
funds held with the RBA or any foreign central bank should also be reported in this data item.
(b) Banks
Include:
settlement balances – Austraclear and the Reserve Bank Information and Transfer System (RITS) balances with banks;
amounts owing and in the course of collection from banks in relation to the payments system; and
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; and
amounts owing and in the course of collection from other ADIs in relation to the payments system.
1.4Total eligible cash and liquid assets
Represents the sum of items 1.1 – 1.3.
Deposits on a call basis [APS 210 paragraph 12(d)]
2.1Deposits on a call basis [APS 210 paragraph 12(d)]
(a)Banks
Include:
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 APS 210 the funds must be free from encumbrances.
(b)Other ADIs
Include:
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 APS 210 the funds must be free from encumbrances.
2.2Total eligible 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 [APS 210 paragraph 12(b)]
Eligible collateral for RBA market operations
The RBA 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 RBA 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 RBA 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 Euro entitlements;
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;
European Bank for Reconstruction and Development;
European Investment Bank;
Inter-American Development Bank;
International Bank for Reconstruction and Development; and
International Finance Corporation.
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 [APS 210 (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 or Transferable Certificates of Deposit.
To qualify as “high quality liquid assets” in accordance with APS 210 the securities must also be free from encumbrances.
Other eligible deposits not on a call basis [APS 210 paragraph 12(d)]
Deposits invested on other than a call basis (i.e. term deposits) will qualify for High Quality Liquid Assets (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 [APS 210 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 [APS 210 paragraph 12(d)]
Note: In the calculation of HQLA as required by APS 210, 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.
8.1HQLA deposits on a call basis placed with the reporting ADI by other ADI's [APS 210 paragraph 12(d)]. Disclose this in relation to the following:
(a)Banks
Include:
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
Include:
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.
8.2Total 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).
8.3Other deposits not on a call basis placed with the reporting ADI by other ADI's [APS 210 paragraph 12(d)]
(a)Banks
Include:
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
Include:
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.
8.4Total 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).
8.5Total placements by other ADIs (i.e. 8.2 + 8.4)
Represents the sum of items disclosed under point 8.2 and 8.4.
8.6HQLA 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 APS 210 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 ARF 323.0)
Disclose the figure for “Total Liabilities” per ARF 323.0.
Plus: Total shareholders’ equity (per the Statement of Financial Position (Licensed ADI))
Disclose the figure for ‘Total Shareholders’ Equity’ per ARF 323.0.
Less: Capital base (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 (i.e. 8.5 - 8.6)
This amount must not be negative. i.e. 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 items 11 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.
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 APS 210 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.
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