Banking (Statistics) Amendment Regulations 2000 (No. 1) 2000 No. 115
EXPLANATORY STATEMENT
Statutory Rules 2000 No. 115
Issued by the Authority of the Minister for Financial Services and Regulation
Banking Act 1959
Banking (Statistics) Amendment Regulations 2000 (No. 1)
Subsection 71 (1) of the Banking Act 1959 (the Act) provides that the Governor-General may make Regulations for the purposes of the Act.
Subsection 71(3) provides the Governor-General shall not make regulations for or in relation to requiring Authorised Deposit-taking Institutions (ADIs) or Non-Operating Holding Companies (NOHCs) to observe requirements in relation to prudential matters except in accordance with the recommendation of the Treasurer.
Subsection 74(4) states that before making a recommendation for the purposes of subsection 71(3), the Treasurer shall consult APRA. The Treasurer has recommended these particular Regulations and has consulted with the Australian Prudential Regulation Authority (APRA).
Section 5 1 of the Act provides that the Regulations may make provision for matters relating to the collection of information ADIs, NOHCs and their subsidiaries.
Specifically, paragraph 5 1 (1)(a) states that regulations may make provision for and in relation to requiring an ADI, an authorised NO1IC, or a subsidiary of an ADI or an authorised NO1IC, to prepare, and give to APRA accounts and financial statements.
For the purposes of paragraph 51(1)(a), Regulation 6 of the Banking (Statistics) Regulations 1989 states that an ADI must prepare a statement of assets and liabilities on its Australian books in accordance with the form in Schedule 3. Sub-regulation 6(2) sets out the frequency at which the statement of assets and liabilities is to be prepared by ADIs and provided to APRA- This information is provided by ADIs on their Forms D retums, which were previously submitted on a weekly basis.
The purpose of the Regulations is to amend the Principal Regulations to vary the timing requirements for submission of statements of assets and liabilities. APRA and the Reserve Bank of Australia (RBA) use the information provided in the statement of assets and liabilities when performing their regulatory and monetary policy functions respectively. APRA and the RBA agreed that it was no longer necessary to collect Form D information from ADIs on a weekly basis and instead consider this collection should be made on a monthly basis.
In addition, for consistency purposes, a further amendment was necessary to ensure that the specific cut-off day for the provision of the statement of assets and liabilities to APRA aligned with the new monthly collection. The Regulations provide that statements are to be prepared as at the last day of each month and submitted to APRA no later than 14 days after the last day of the month. Details of the Regulations appear in the Attachment.
The Regulations commence on 1 July 2000.
ATTACHMENT
Banking (Statistics) Amendment Regulations-2000 (No. 1))
Regulation 1 - Name of Regulations
These regulations are the Banking (Statistics) Amendment Regulations 2000 (No. 1)
Regulation 2 - Commencement
These regulations commence on 1 July 2000.
Regulation 3 - Amendment of the Banking (Statistics) Regulations 1989
The Schedule 1 amends the Banking (Statistics) Regulations 1989.
Item [11 - Timing issues relating to the preparation of the statement of assets and liabilities
Regulation 3 provides that the statement of assets and liabilities is prepared at the end of each month.
Regulation 3 provides that the statement of assets and liabilities is forwarded to APRA on or by 14 days after the end of the month.
Overview
The Banking (Statistics) Amendment Regulations 2000 (No. 1), enacted under the Banking Act 1959, address the need to adjust the frequency and timing of the submission of statements of assets and liabilities by Authorised Deposit-taking Institutions (ADIs) to the Australian Prudential Regulation Authority (APRA). These regulations were developed in consultation with APRA and the Reserve Bank of Australia (RBA), which agreed on the transition from weekly to monthly submissions. The amendments ensure that the information provided aligns with the regulatory and monetary policy functions of APRA and the RBA, respectively. The Regulations were made pursuant to the authority of the Minister for Financial Services and Regulation, with the policy objective of streamlining the data collection process while maintaining the integrity and timeliness of the information required by the regulators.
Scope and Application
The Banking (Statistics) Amendment Regulations 2000 (No. 1) applies to Authorised Deposit-taking Institutions (ADIs) and Non-Operating Holding Companies (NOHCs) as defined under the Banking Act 1959, as well as their subsidiaries. These entities are required to prepare and submit specific financial statements and accounts to the Australian Prudential Regulation Authority (APRA). The regulations modify the existing Banking (Statistics) Regulations 1989 to adjust the frequency and timing for the submission of statements of assets and liabilities from a weekly to a monthly basis. This change was agreed upon by APRA and the Reserve Bank of Australia, reflecting a consensus that the detailed weekly data collection was no longer necessary. The Regulations also ensure that the cut-off day for the submission of these statements aligns with the new monthly schedule. The amendment's jurisdictional reach is national, as it pertains to financial entities operating across Australia, and it is governed under the Commonwealth’s authority. The Regulations came into effect on 1 July 2000.
Key Provisions
The Banking (Statistics) Amendment Regulations 2000 (No. 1) provide amendments to the existing Banking (Statistics) Regulations 1989 (section 3). Specifically, Regulation 3 modifies the timing for the preparation and submission of statements of assets and liabilities by Authorised Deposit-taking Institutions (ADIs). Under the new regime, ADIs are required to prepare their statements of assets and liabilities as at the last day of each month (item 1, Schedule 1). These statements must then be submitted to the Australian Prudential Regulation Authority (APRA) no later than 14 days after the end of the month (item 1, Schedule 1). These amendments reflect a consensus between APRA and the Reserve Bank of Australia (RBA) that weekly collection of such information is no longer necessary, and that a monthly collection would be sufficient for their regulatory and monetary policy functions respectively.
The obligations imposed on ADIs under these Regulations are primarily administrative in nature. ADIs must now adjust their internal processes to ensure that statements of assets and liabilities are prepared monthly, as at the last day of each month, instead of on a weekly basis as previously required (item 1, Schedule 1). Furthermore, ADIs must ensure these statements are submitted to APRA within 14 days following the end of each month (item 1, Schedule 1). These obligations aim to streamline the data collection process, reducing the administrative burden on ADIs while still providing APRA and the RBA with the necessary information for their functions.
Non-compliance with these Regulations could potentially lead to enforcement actions by APRA. While the Regulations themselves do not explicitly detail specific penalties for non-compliance, failure to adhere to regulatory requirements can lead to broader regulatory scrutiny and potential enforcement actions under the Banking Act 1959. Such actions could include fines, public reprimands, or even more stringent regulatory oversight. The exact penalties would depend on the nature and severity of the breach, as well as any additional provisions under the Banking Act 1959 or other relevant legislation. It is essential for ADIs to ensure compliance to avoid any adverse regulatory consequences.