Financial Sector (Collection of Data) (reporting standard) determination
No.59 of 2008
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority
Financial Sector (Collection of Data) Act 2001, paragraph 13(1)(a)
Under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (FSCOD Act), APRA has the power to determine (in writing) standards in relation to prudential matters to be complied with by all authorised deposit-taking institutions (ADIs), including Australian banks, foreign subsidiary banks, credit unions, building societies and branches of foreign banks.
Financial Sector (Collection of Data) (reporting standard) determination No.59 of 2008 makes Reporting Standard ARS 320.8 Housing Loan Reconciliation (ARS 320.8) to take effect from 1 September 2008.
1. Background
From 30 September 2008, APRA will collect housing loan reconciliation data under reporting form ARF 320.8 Housing Loan Reconciliation (ARF 320.8) from ADIs with total housing loan assets greater than $1 billion. APRA’s standardised electronic data collection system, Direct to APRA (D2A) provides for the processes and controls to collect, store, retrieve and report this data. The data will provide a greater understanding of housing lending activities and household balance sheets. The information will be used primarily by the RBA in monetary policy setting. A secondary use will be to provide greater granularity to APRA’s analysis of credit risk. The form is intended to capture data already internally available to each institution’s internal management.
2. Purpose of the instrument
Reporting standard ARS 320.8 and its associated reporting form and instructions will be issued under this determination. The collection of quarterly data under the FSCOD Act and using D2A will commence for the reporting period ending 30 September 2008.
3. Operation of the instrument
ARS 320.8 outlines the overall requirements for the provision of information to APRA relating to an ADI’s reconciliation of housing loans. It should be read in conjunction with reporting form ARF 320.8 and the associated instructions.
4. Consultation
APRA consulted in February 2008 with 30 ADIs who will, or are likely to be, required to submit ARF 320.8 on a quarterly basis. The consultation process involved the release of draft reporting standard, form and instructions. In general, the responses discussed the need for IT development and testing and suggested that APRA reconsider the commencement of reporting (then envisaged for April 2008). APRA agreed to delay the first collection of data until October 2008 (for the September quarter). A number of the responses also proposed specific areas for clarification, and APRA subsequently made some further changes to the instructions.