Document ID: chunk:federal_register_of_legislation:F2018L00369:body:0:p4
Version: federal_register_of_legislation:F2018L00369
Segment Type: other
Provision Reference: 
Character Range: 8490–11649

ADI that is not an Australian-owned bank, a branch of a foreign bank, a building society, a credit union or a foreign subsidiary bank  but does not include Cairns Penny Savings & Loans Limited.

    reporting period means a period mentioned in paragraph 7 or, if applicable, paragraph 8.

    stake means a stake determined under the Financial Sector (Shareholdings) Act 1998, as if the only associates that were taken into account under paragraph (b) of subclause 10(1) of the Schedule to that Act were those set out in paragraphs (h), (j) and (l) of subclause 4(1).

    16.         Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.

Reporting Form ARF 325.0

ADI International Operations

Instruction Guide

Australian-owned banks and foreign subsidiary banks are instructed to prepare a separate form for each of their related bank offices located overseas. Related bank offices include the bank's branches, banking subsidiaries (e.g. deposit-taking companies in Hong Kong) and banking joint ventures.

General directions and notes

Reporting entity[1]

The International Operations form is to be completed by Australian-owned banks and foreign subsidiary banks for each foreign bank office on an unconsolidated basis. This includes international transactions between any related bank offices. Branches of foreign banks in Australia are not required to complete this form.

Securitisation deconsolidation principle

Except as otherwise specified in these instructions, the following applies:

     1. Where an authorised deposit-taking institution (ADI) (or a member of its Level 2 consolidated group) participates in a securitisation that meets APRA's operational requirements for regulatory capital relief under Prudential Standard APS 120 Securitisation (APS 120):

       (a)          special purpose vehicles (SPVs) holding securitised assets may be treated as non-consolidated independent third parties for regulatory reporting purposes, irrespective of whether the SPVs (or their assets) are consolidated for accounting purposes;

       (b)          the assets, liabilities, revenues and expenses of the relevant SPVs may be excluded from the ADI's reported amounts in APRA's regulatory reporting returns; and

       (c)          the underlying exposures (i.e. the pool) under such a securitisation may be excluded from the calculation of the ADI's regulatory capital (refer to APS 120). However, the ADI must still hold regulatory capital for the securitisation exposures[2] that it retains or acquires and such exposures are to be reported in Reporting Form ARF 120.1 Securitisation – Regulatory Capital. The risk-weighted assets RWA relating to such securitisation exposures must also be reported in Reporting Form ARF 110.0 Capital Adequacy (ARF 110.0).

    2.             Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that does not meet APRA's operational requirements for regulatory capital relief under APS 120,