Australian Prudential Regulation Authority (confidentiality) determination No. 3 of 2008

Overview

The Australian Prudential Regulation Authority (confidentiality) determination No. 3 of 2008 was enacted to facilitate the disclosure of certain financial information provided by locally-incorporated banks and foreign authorised deposit-taking institutions under Reporting Standard ARS 320.0 (2005). This Determination, made under section 57 of the Australian Prudential Regulation Authority Act 1998, was introduced to address the need for transparency and public access to banking statistics while ensuring that sensitive information remains protected. The policy objective was to enable the Australian Prudential Regulation Authority (APRA) to publish an edition of Monthly Banking Statistics for January 2008, encompassing a range of financial data on assets, liabilities, and deposits of banks. The Determination excludes sensitive information, such as shareholder's equity, total income tax liability, and total provisions, which were deemed confidential following consultations with industry stakeholders.

Scope and Application

The Australian Prudential Regulation Authority (confidentiality) determination No. 3 of 2008 pertains to the disclosure of information provided by locally-incorporated banks and foreign authorised deposit-taking institutions (ADIs) under Reporting Standard ARS 320.0 (2005). This Determination was made under section 57 of the Australian Prudential Regulation Authority Act 1998 (APRA Act) and serves to facilitate the publication of an edition of Monthly Banking Statistics by APRA, specifically containing data relevant to January 2008. The Determination applies to information received by APRA from both foreign ADIs and locally-incorporated banks, and it explicitly excludes information deemed sensitive, such as details relating to shareholders' equity, total income tax liability, and total provisions, based on consultations with industry stakeholders. This legal instrument is a mechanism allowing APRA to publish non-confidential banking data, thereby enhancing transparency and public interest in the financial sector while excluding sensitive financial details to protect proprietary and strategic information.

Key Provisions

The Australian Prudential Regulation Authority (APRA) Confidentiality Determination No. 3 of 2008 (the ‘Determination’), made on 18 February 2008 under section 57 of the Australian Prudential Regulation Authority Act 1998 (the ‘APRA Act’), aims to allow APRA to publish the Monthly Banking Statistics for January 2008. This determination pertains to information provided by locally-incorporated banks and foreign authorised deposit-taking institutions (ADIs) under Reporting Standard ARS 320.0 (2005). This Determination is one of APRA's numerous determinations concerning the confidentiality of information provided under the aforementioned reporting standards. Under the APRA Act, APRA has the authority to decide whether information in a reporting document provided to it is confidential. This authority is subject to certain conditions, including the provision of a reasonable opportunity for relevant entities or their representative associations to make representations about the confidentiality of the information, which APRA must consider. The Determination applies to information given to APRA by foreign ADIs and locally-incorporated banks, excluding sensitive information such as shareholder’s equity, total income tax liability, and total provisions. The items that will be disclosed under this Determination are outlined in the Appendix to the Explanatory Statement. APRA is required to publish the Monthly Banking Statistics, which will include specified items such as selected assets, loans and advances, and selected liabilities on the Australian books of individual banks, as well as deposits on Australian books of individual banks. The publication of this data is intended to serve the public interest and is in line with the former practice under section 51 of the Banking Act 1959. The Determination imposes obligations on APRA to provide a reasonable opportunity for relevant entities or their representative associations to make representations regarding the confidentiality of the information before making its determination. APRA must take these representations into account when deciding whether the information is non-confidential. The entities subject to this Determination, such as locally-incorporated banks and foreign ADIs, are required to provide the specified information to APRA under the Financial Sector (Collection of Data) Act 2001. There are no explicit offences or penalties stated in the Determination for breach of its provisions. However, under section 56(2) of the APRA Act, it is generally an offence to disclose information in a reporting document that contains confidential information, unless APRA has determined otherwise. The Determination ensures that the specified information is not considered confidential, thereby permitting its disclosure in the Monthly Banking Statistics. Failure to comply with the requirements to provide information to APRA may result in civil or criminal consequences under the APRA Act or other relevant legislation, depending on the nature and severity of the breach.