Australian Prudential Regulation Authority (confidentiality) determination No. 13 of 2006

Overview

The Australian Prudential Regulation Authority (confidentiality) determination No. 13 of 2006 was enacted to address the need for transparency in the banking sector, allowing the Australian Prudential Regulation Authority (APRA) to publish data from locally-incorporated banks and foreign authorised deposit-taking institutions (ADIs). This determination was made under the authority of the Australian Prudential Regulation Authority Act 1998, which empowers APRA to determine the confidentiality of certain information provided to it. The primary objective of this determination is to enable APRA to publish an edition of Monthly Banking Statistics containing data for September 2006, thereby fostering a more transparent financial sector. The determination specifies which types of information can be disclosed without breaching confidentiality, after taking into account representations from relevant entities and bodies. This legislative instrument aims to balance the need for disclosure of financial information for public interest with the protection of sensitive financial data.

Scope and Application

The Australian Prudential Regulation Authority (confidentiality) determination No. 13 of 2006, made under section 57 of the Australian Prudential Regulation Authority Act 1998, specifies the non-confidential nature of certain information given to APRA by foreign Authorised Deposit-Taking Institutions (ADIs) and locally-incorporated banks under the Reporting Standard ARS 320.0 (2005). This information, received by APRA between the dates of its previous and this determination, pertains to data for the publication of an edition of Monthly Banking Statistics concerning September 2006. The determination does not apply to sensitive information such as shareholder’s equity, total income tax liability, and total provisions, which were excluded following consultations with the industry. The items to be disclosed include various assets, liabilities, loans, and deposits, detailed in the appended tables of the Explanatory Statement. This determination is part of APRA's broader authority to manage and disclose financial sector data while ensuring public interest and transparency.

Key Provisions

The Australian Prudential Regulation Authority (confidentiality) determination No. 13 of 2006 (the ‘Determination’), issued on 20 October 2006, represents APRA’s twenty-eighth determination regarding information provided under Reporting Standard ARS 320.0 (2005) and its predecessor reporting standards, pursuant to section 57 of the Australian Prudential Regulation Authority Act 1998 (the ‘APRA Act’). This Determination aims to allow APRA to publish an edition of Monthly Banking Statistics containing data for September 2006. According to subsection 56(5C) of the APRA Act, it is not an offence to disclose information in a reporting document given to APRA under the Financial Sector (Collection of Data) Act 2001 if APRA has determined, under section 57, that the document does not contain confidential information. Section 57 of the APRA Act grants APRA the authority to determine whether a document given under section 13 of the Financial Sector (Collection of Data) Act contains confidential information, requiring APRA to provide relevant entities or bodies, or their representative association, with a reasonable opportunity to make representations regarding the confidentiality of the information before making such a determination. The Determination specifies that certain information provided to APRA under Reporting Standard ARS 320.0 (2005) Statement of Financial Position (Domestic Books), which is made under section 13 of the Financial Sector (Collection of Data) Act by Financial Sector (Collection of Data) determination No. 37 of 2005, is non-confidential. This applies to information received by APRA from foreign authorised deposit-taking institutions (generally banks) and locally-incorporated banks, provided that it is received between the date of APRA’s last determination under section 57 and the date of this Determination. The Determination excludes sensitive information, including that relating to shareholders' equity, total income tax liability, and total provisions, based on consultations with the industry under section 57 of the APRA Act. APRA initiated consultations with locally-incorporated banks, foreign authorised deposit-taking institutions, and their respective representative bodies on 24 December 2003, seeking their views on whether the information covered by the Determination should be treated as non-confidential. Most entities agreed that the information could be treated as non-confidential. However, a minority objected to the publication of any information from ARS 320.0. APRA considered a strong public interest in publishing this information, noting that similar information was regularly published under the former section 51 of the Banking Act 1959. The items set out in the Appendix to this Explanatory Statement detail the specific data that will be disclosed as part of the Monthly Banking Statistics publication, including selected assets, loans and advances, and selected liabilities on Australian books of individual banks. The Determination imposes obligations on foreign authorised deposit-taking institutions and locally-incorporated banks to provide APRA with the specified information under Reporting Standard ARS 320.0 (2005), ensuring that the data is non-confidential as determined by APRA. These entities must comply with the terms of the Determination when submitting their reports to APRA. Failure to comply with the requirements of the Determination may result in consequences such as fines or other penalties. However, the Determination itself does not explicitly outline specific penalties for non-compliance; such penalties would be governed by other relevant legislation, such as the APRA Act or the Financial Sector (Collection of Data) Act 2001. It is important for the entities governed by this Determination to adhere to the requirements to avoid any potential civil or criminal liabilities that may arise from non-compliance with the relevant legislative frameworks.