Australian Prudential Regulation Authority (confidentiality) determination No. 20 of 2011

Overview

The Australian Prudential Regulation Authority (confidentiality) determination No.20 of 2011 was introduced to address the need for the Australian Prudential Regulation Authority (APRA) to publish an edition of Monthly Banking Statistics containing data for October 2011. This determination was made under section 57 of the Australian Prudential Regulation Authority Act 1998 (APRA Act) and is the ninety-third such determination by APRA regarding information provided under Reporting Standard ARS 320.0 (2005). The primary objective of this Determination is to enable APRA to disclose specific non-confidential information from locally-incorporated banks and foreign authorised deposit-taking institutions (ADIs) to the public, thereby promoting transparency and public access to financial data while safeguarding sensitive information. The Determination excludes sensitive information, such as shareholder equity, total income tax liability, and total provisions, which were identified as confidential following consultations with the industry.

Scope and Application

The Australian Prudential Regulation Authority (confidentiality) determination No. 20 of 2011 applies to information provided by locally-incorporated banks and foreign authorised deposit-taking institutions under the Reporting Standard ARS 320.0 (2005) to the Australian Prudential Regulation Authority (APRA). This information, which is generally submitted under section 13 of the Financial Sector (Collection of Data) Act 2001, includes details about the financial position of these institutions. The Determination specifies that certain information is deemed non-confidential, allowing it to be published in the Monthly Banking Statistics. However, sensitive information such as shareholder equity, total income tax liability, and total provisions are excluded. This Determination was made under section 57 of the Australian Prudential Regulation Authority Act 1998, which allows APRA to determine the confidentiality of information received. The Determination follows consultations with industry, where most entities agreed that the specified information could be treated as non-confidential, although a few objected to the publication of any information from ARS 320.0.

Key Provisions

The Australian Prudential Regulation Authority (confidentiality) determination No.20 of 2011 (the Determination) is a significant piece of legislation under section 57 of the Australian Prudential Regulation Authority Act 1998 (APRA Act). This Determination was made to enable APRA to publish an edition of Monthly Banking Statistics, specifically for the data of October 2011. It allows APRA to disclose certain information provided by locally-incorporated banks and foreign authorised deposit-taking institutions (ADIs) under Reporting Standard ARS 320.0 (2005). This standard pertains to the Statement of Financial Position (Domestic Books) and its predecessors. Importantly, the Determination specifies which types of information can be considered non-confidential and thus published. The Determination mandates that APRA must consult with relevant entities or their representative associations before determining whether certain information is non-confidential. This ensures that the entities involved have a reasonable opportunity to make representations about the confidentiality of the information. The information that falls under the purview of this Determination includes specific financial data from locally-incorporated banks and foreign ADIs, such as assets, loans, and deposits. However, it explicitly excludes sensitive information like shareholders' equity, total income tax liability, and total provisions, which remain confidential. This exclusion was a result of consultations with the industry as required by section 57 of the APRA Act. Entities governed by this Determination, particularly locally-incorporated banks and foreign ADIs, are required to provide the specified non-confidential information to APRA. This information must be submitted in accordance with Reporting Standard ARS 320.0 and must be given to APRA on or after the date of APRA’s last determination and before the date of this Determination. Failure to comply with these requirements could potentially result in legal repercussions. However, the Determination itself does not explicitly outline specific penalties for non-compliance. Instead, the underlying legislation, primarily the APRA Act, would govern any potential civil or criminal consequences for breaches of the reporting obligations. While the Determination does not explicitly outline penalties for breach, it is underpinned by the APRA Act, which has provisions for offences and penalties. Section 56(2) of the APRA Act prohibits the unauthorised disclosure of information. However, under section 56(5C) of the APRA Act, it is not an offence to disclose information in a reporting document if APRA has determined that the document does not contain confidential information, as is the case with the Determination. This means that while there are potential civil or criminal consequences for unauthorised disclosures under the APRA Act, the specific provisions of this Determination mitigate those risks by clearly defining what information can be published.