Non-Confidentiality Determination No. 1 of 2005

Overview

The Australian Prudential Regulation Authority (APRA) issued Non-Confidentiality Determination No. 1 of 2005 on 21 January 2005 under the authority granted by section 57 of the Australian Prudential Regulation Authority Act 1998. This determination aims to facilitate APRA's publication of an edition of Monthly Banking Statistics that includes data for December 2004. The legislation was enacted by the Australian Prudential Regulation Authority, with the primary objective of allowing APRA to disclose certain information provided by locally-incorporated banks and foreign authorised deposit-taking institutions under Reporting Standard ARS 320.0 (2003), which is deemed non-confidential. The determination follows consultations with industry stakeholders and considers their feedback, excluding sensitive information such as shareholder’s equity, total income tax liability, and total tax provisions from the non-confidential list. The items that will be disclosed under this determination are detailed in Appendix A of the Explanatory Statement.

Scope and Application

The Non-Confidentiality Determination No. 1 of 2005 made by the Australian Prudential Regulation Authority (APRA) under section 57 of the Australian Prudential Regulation Authority Act 1998, concerns the determination of specific information as non-confidential for the purposes of being published in the Monthly Banking Statistics. This determination applies to locally-incorporated banks and foreign authorised deposit-taking institutions (ADIs) that provide information under Reporting Standard ARS 320.0 (2003) to APRA, specifically those received after APRA's last determination under section 57. This encompasses information provided under section 13 of the Financial Sector (Collection of Data) Act 2001. The determination excludes sensitive information such as shareholder's equity, total income tax liability, and total tax provisions, following consultations with industry. APRA consulted with relevant entities and their representative bodies, noting that most agreed to the non-confidential status of the information, although some objected to any publication of information from ARS 320.0. The items to be disclosed, as detailed in Appendix A, include selected assets, loans and advances, and selected liabilities on Australian books of individual banks, as well as deposits. This Determination facilitates the publication of these specific financial details, aligning with the public interest in financial transparency and building on the precedent set under the former section 51 of the Banking Act 1959.

Key Provisions

The main operative sections of the Non-Confidentiality Determination No. 1 of 2005 (the 'Determination') are primarily outlined in sections that specify the information deemed non-confidential and the procedure APRA must follow in making such determinations. Section 57 of the Australian Prudential Regulation Authority Act 1998 (APRA Act) empowers APRA to determine whether a document given under the Financial Sector (Collection of Data) Act 2001 contains confidential information. In this instance, the Determination asserts that certain information provided by locally-incorporated banks and foreign authorised deposit-taking institutions (ADIs) under Reporting Standard ARS 320.0 (2003) is non-confidential. This determination enables APRA to publish an edition of Monthly Banking Statistics containing data for December 2004. The information deemed non-confidential includes specific financial data such as assets, loans, and deposits, as detailed in the appendix of the Explanatory Statement. The obligations and requirements imposed by the Determination on the parties governed by it are relatively straightforward. Banks and ADIs must provide APRA with the specified financial information under Reporting Standard ARS 320.0 (2003). APRA, in turn, is required to give these entities or their representative associations a reasonable opportunity to make representations about the confidentiality of the information before making its determination. Once the determination is made, APRA must take these representations into account. Additionally, APRA must ensure that sensitive information, such as details relating to shareholder's equity, total income tax liability, and total tax provisions, are excluded from the non-confidential data to be published. These obligations aim to balance the need for financial transparency with the protection of sensitive information. The Determination does not explicitly outline specific offences or penalties for breaches within its text. However, the APRA Act and related legislation may impose various civil and criminal penalties for breaches of confidentiality or non-compliance with reporting requirements. For example, under section 56(2) of the APRA Act, it is generally an offence to disclose confidential information, with potential penalties including fines and imprisonment. Nevertheless, the Determination itself primarily focuses on clarifying what information can be disclosed and the conditions under which such disclosures are permissible, rather than detailing the penalties for non-compliance with its provisions. The overarching legal framework, including the APRA Act and the Financial Sector (Collection of Data) Act 2001, governs the potential consequences of failing to adhere to the requirements set forth in the Determination.