Australian Prudential Regulation Authority (confidentiality) determination No. 4 of 2009

Overview

The Australian Prudential Regulation Authority (confidentiality) determination No.4 of 2009 was enacted under the Australian Prudential Regulation Authority Act 1998 (APRA Act) to address the need for the Australian Prudential Regulation Authority (APRA) to publish an edition of Monthly Banking Statistics containing data from February 2009. This determination, which marks the fifty-seventh under section 57 of the APRA Act, aims to allow APRA to disclose certain non-confidential information provided by locally-incorporated banks and foreign authorised deposit-taking institutions (ADIs) under the Reporting Standard ARS 320.0 (2005) Statement of Financial Position (Domestic Books). The APRA Act empowers APRA to determine whether a document contains confidential information, requiring consultation with relevant entities or their representative associations before making such a determination. The policy objective behind this determination is to facilitate the publication of banking statistics while excluding sensitive information, following consultations with industry stakeholders.

Scope and Application

The Australian Prudential Regulation Authority (confidentiality) determination No. 4 of 2009 pertains to the publication of financial data provided by locally-incorporated banks and foreign authorised deposit-taking institutions (ADIs) under the Reporting Standard ARS 320.0 (2005) Statement of Financial Position (Domestic Books). This determination was made under section 57 of the Australian Prudential Regulation Authority Act 1998 (APRA Act) to facilitate the disclosure of non-confidential information to the public through the publication of Monthly Banking Statistics. The Determination applies to data submitted to the Australian Prudential Regulation Authority (APRA) by both foreign ADIs and locally-incorporated banks, with the aim of ensuring transparency in the banking sector. However, certain sensitive financial information, such as details relating to shareholders' equity, total income tax liability, and total provisions, is excluded from this disclosure to maintain the confidentiality of critical financial metrics. The information deemed non-confidential and subject to publication includes selected assets, loans, and deposits on the Australian books of individual banks, as detailed in the accompanying Appendix to the Explanatory Statement.

Key Provisions

The Australian Prudential Regulation Authority (confidentiality) determination No.4 of 2009 (the Determination) is a directive issued under section 57 of the Australian Prudential Regulation Authority Act 1998 (APRA Act). This Determination is the fifty-seventh made by APRA and it aims to enable the publication of data concerning February 2009 in the Monthly Banking Statistics edition. The primary operative sections of the Determination are those that define the scope of information deemed non-confidential and which can be published by APRA. Section 56(5C) of the APRA Act allows APRA to determine that certain information in reporting documents provided under the Financial Sector (Collection of Data) Act 2001 is not confidential. This section of the Act provides APRA with the authority to make such determinations after considering representations from relevant entities, as required by subsection 57(1) of the APRA Act. The Determination specifies that certain information submitted to APRA under the Reporting Standard ARS 320.0 (2005) Statement of Financial Position (Domestic Books) (ARS 320.0) is non-confidential. This applies to data from both foreign Authorised Deposit-taking Institutions (ADIs) and locally-incorporated banks, provided that the information is received between the dates of APRA’s previous and current determinations under section 57. However, the Determination excludes information that is considered sensitive, such as details relating to shareholders’ equity, total income tax liability, and total provisions. These exclusions were made following consultations with industry stakeholders under section 57 of the APRA Act. The types of information that will be disclosed, and which are covered by the Determination, are detailed in the appendix to the Explanatory Statement. Entities governed by the Determination, including locally-incorporated banks and foreign ADIs, are required to provide APRA with the specified financial information under ARS 320.0. These entities must ensure that the information they submit is accurate and complete. They must also comply with any additional requirements set by APRA as part of the determination process. Additionally, these entities are expected to cooperate with APRA during the consultation phase, providing any necessary representations regarding the confidentiality of the information. Failure to comply with these obligations could result in the entities facing scrutiny or potential penalties if the information provided is found to be inaccurate or misleading. The Determination itself does not explicitly state offences or penalties for non-compliance with its provisions. However, under the APRA Act, breaches of the act’s requirements can lead to civil or criminal penalties. For instance, section 56(2) of the APRA Act prohibits the disclosure of confidential information. Although the Determination exempts certain information from being considered confidential, any unauthorised disclosure of information that remains confidential could still lead to enforcement actions. Penalties for such breaches can include fines and, in severe cases, imprisonment. The specific penalties would depend on the nature and severity of the breach, as well as any other applicable laws.