Financial Sector (Collection of Data) (reporting standard) determination No. 2 of 2014 - ARS 210.0 - Liquidity

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Legislation au F2014L00404 Not in force Legislative Instrument

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Financial Sector (Collection of Data) (reporting standard) determination No. 2 of 2014

Reporting Standard ARS 210 Liquidity

EXPLANATORY STATEMENT

Prepared by the Australian Prudential Regulation Authority

Financial Sector (Collection of Data) Act 2001 section 13

Acts Interpretation Act 1901, subsection 33(3)

 

Under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act), APRA has the power to determine reporting standards, in writing, with which financial sector entities must comply. Such standards relate to reporting financial or accounting data and other information regarding the business or activities of the entities. Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to issue an instrument the power shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to revoke any such instrument.

On 4 April 2014, APRA made Financial Sector (Collection of Data) (reporting standard) determination No. 2 of 2014 (the instrument), which revokes Financial Sector (Collection of Data) (reporting standard) determination No. 18 of 2008 (which made Reporting Standard ARS 210.0 Statement of High Quality Liquid Assets Calculation) and determines a new Reporting Standard ARS 210.0 Liquidity (ARS 210.0).

The instrument is to take effect on its date of registration on the Federal Register of Legislative Instruments.

  1. Background

APRA’s mandate is to ensure the safety and soundness of prudentially regulated financial institutions so that they can meet their financial promises to depositors, policyholders and fund members within a stable, efficient and competitive financial system. In response to the global financial crisis, the Basel Committee on Banking Supervision developed and released global liquidity measures for internationally active banks, known as Basel III liquidity. APRA incorporated these measures in Prudential Standard APS 210 Liquidity (APS 210).  

2.                   Purpose and operation of the instrument

The purpose of the instrument is to revoke the existing ARS 210.0 and replace it with a new version of ARS 210.0.

ARS 210.0 collects information that will be used by APRA for the purpose of prudential supervision, including assessing compliance with APS 210. ARS 210 consists of a suite of five reporting forms that will collect information from authorised deposit-taking institutions (ADIs) and the non-operating holding company (NOHC) of an ADI in certain circumstances.  The five forms and the associated reporting requirements of ARS 210.0 are:

  • Reporting Form ARF 210.1 Liquidity Coverage Ratio is a new form that collects data required for calculation of the Liquidity Coverage Ratio (LCR). The form consists of four sections covering liquid assets, cash inflows, cash outflows and calculation of the LCR. This form will be required to be submitted on a quarterly basis for those ADIs requiring to submit the form;
  • Reporting Form ARF 210.2 Minimum Liquidity Holdings Ratio amends the existing Reporting Form ARF 210.0 Statement of High Quality Liquid Assets Calculation to incorporate updated terminology and provide additional information necessary for the supervision of MLH ADIs — being an ADI required by APRA for liquidity purposes to comply with minimum liquidity holding requirements as outlined in APS 210 Attachment C.
  • Reporting Form ARF 210.3 Balance Sheet Maturity is a new reporting form designed to facilitate the reporting of data required for balance sheet gap and maturity analysis. This information will assist APRA in monitoring the funding requirements of an ADI as well as the industry as a whole.
  • Reporting Form ARF 210.4 Balance Sheet Forecast will provide a high level snapshot of the forecast balance sheet of an ADI.

3. Consultation

APRA has consulted extensively on its new liquidity requirements, including the liquidity reporting requirements. This consultation has been set out in three discussion papers and a final response paper:

  • Discussion paper, Implementing Basel III liquidity reforms in Australia, November 2011;
  • Discussion paper, Liquidity reporting requirements for authorised deposit-taking institutions, November 2012;
  • Discussion paper, Implementing Basel III liquidity reforms in Australia, May 2013; and
  • Response to Submissions, Implementing Basel III liquidity reforms in Australia, December 2013.

4. Regulation Impact Statement

APRA prepared a Regulation Impact Statement that has been lodged as supporting material.

 

5.  Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

A Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is provided at Attachment A to this Explanatory Statement.

 

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Financial Sector (Collection of Data) (reporting standard) determination No.2 of 2014

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (HRPS Act).

 

Overview of the Legislative Instrument

 

The instrument revokes Reporting Standard ARS 210.0 Statement of High Quality Liquid Assets Calculation made under Financial Sector (Collection of Data) (reporting standard) determination No. 18 of 2008 and determines a new Reporting Standard ARS 210.0 Liquidity (ARS 210.0). ARS 210.0 aims to ensure that ADIs provide information to APRA necessary to allow it to assess compliance with Prudential Standard APS 210 Liquidity.

 

Human rights implications

 

APRA has assessed the instrument and is of the view that it does not engage any of the applicable rights or freedoms recognised or declared in the international instruments listed in section 3 of the HRPS Act. Accordingly, in APRA’s assessment, the instrument is compatible with human rights.

 

Conclusion

 

The Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Financial Sector (Collection of Data) (reporting standard) determination No. 2 of 2014 was enacted to update and replace the existing reporting standard ARS 210.0 Statement of High Quality Liquid Assets Calculation, addressing the need for updated financial data collection and liquidity assessment in response to global financial stability requirements post the global financial crisis. This determination was issued by the Australian Prudential Regulation Authority (APRA) under the authority granted by the Financial Sector (Collection of Data) Act 2001. The primary policy objective of this determination is to ensure that authorised deposit-taking institutions (ADIs) provide APRA with the necessary data to assess compliance with the Prudential Standard APS 210 Liquidity, thereby enhancing the prudential supervision of liquidity in the financial sector. The instrument introduces a new suite of reporting forms under ARS 210.0 Liquidity, including forms for the Liquidity Coverage Ratio, Minimum Liquidity Holdings Ratio, Balance Sheet Maturity, and Balance Sheet Forecast, all aimed at improving APRA's monitoring and assessment capabilities regarding liquidity and funding requirements. This update reflects APRA's commitment to ensuring the safety and soundness of the financial sector, in line with international standards such as those set by the Basel Committee on Banking Supervision. The determination underscores APRA's role in maintaining a stable, efficient, and competitive financial system by ensuring that financial institutions meet their financial obligations.

Scope and Application

The Financial Sector (Collection of Data) (reporting standard) determination No. 2 of 2014 applies to authorised deposit-taking institutions (ADIs) and their non-operating holding companies (NOHC) as mandated by the Financial Sector (Collection of Data) Act 2001. This legislation is designed to ensure that these entities provide comprehensive financial data to the Australian Prudential Regulation Authority (APRA), which uses the information for prudential supervision purposes, particularly for assessing compliance with liquidity standards as outlined in Prudential Standard APS 210. The instrument, which includes the new Reporting Standard ARS 210.0, revokes the previous Reporting Standard ARS 210.0 Statement of High Quality Liquid Assets Calculation established under an earlier determination. The geographic reach of this Act is national, as it applies across all states and territories within Australia. The Act extends its application through subordinate instruments, which include the suite of five reporting forms that detail the specific data requirements for ADIs and NOHCs. These forms are designed to gather critical information regarding liquidity coverage, minimum liquidity holdings, balance sheet maturity, and balance sheet forecasts. There are no stated exclusions or exemptions within this instrument; however, the scope of the reporting requirements may be subject to interpretation and further clarification through APRA's regulatory guidance.

Key Provisions

The Financial Sector (Collection of Data) (reporting standard) determination No. 2 of 2014 (the Instrument) primarily serves to revoke the previous Reporting Standard ARS 210.0 Statement of High Quality Liquid Assets Calculation under Financial Sector (Collection of Data) (reporting standard) determination No. 18 of 2008 and establish a new Reporting Standard ARS 210.0 Liquidity (ARS 210.0). This new standard is aimed at ensuring that authorised deposit-taking institutions (ADIs) provide Australian Prudential Regulation Authority (APRA) with necessary information to assess compliance with Prudential Standard APS 210 Liquidity. The Instrument consists of a suite of five reporting forms, each designed to collect specific types of data pertinent to liquidity assessments (sections 2 and 3). The forms include Reporting Form ARF 210.1 for Liquidity Coverage Ratio, Reporting Form ARF 210.2 for Minimum Liquidity Holdings Ratio, Reporting Form ARF 210.3 for Balance Sheet Maturity, and Reporting Form ARF 210.4 for Balance Sheet Forecast. These forms must be submitted on prescribed schedules, with some requiring quarterly submissions. Entities governed by this Instrument, specifically ADIs and the non-operating holding company (NOHC) of an ADI under certain circumstances, are obligated to accurately complete and submit the specified reporting forms to APRA. These entities must provide data on liquid assets, cash inflows, cash outflows, and other relevant information as stipulated in the forms. The information collected is integral for APRA’s prudential supervision activities, including the assessment of compliance with the Prudential Standard APS 210 Liquidity. The obligations are clearly laid out in the forms themselves, which detail the required information and the frequency of submissions. Failure to comply with the requirements of the Instrument can lead to significant consequences. While the Instrument does not explicitly outline specific offences or penalties for non-compliance, the overarching Financial Sector (Collection of Data) Act 2001 provides a framework for enforcement. Non-compliance with APRA’s requirements can potentially lead to enforcement actions, including but not limited to, financial penalties, orders for remediation, and in severe cases, revocation of authorisation. APRA’s mandate to ensure the safety and soundness of financial institutions underscores the importance of compliance with these reporting standards.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.