Document ID: chunk:federal_register_of_legislation:F2023L00405:body:0:p4
Version: federal_register_of_legislation:F2023L00405
Segment Type: other
Provision Reference: 
Character Range: 8284–11382

to provide any overdue reporting documents in accordance with the old reporting standard.

Interpretation

    17.         In this Reporting Standard:

    AASB has the meaning in section 9 of the Corporations Act 2001.

    ADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.

    APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.

    authorised NOHC has the meaning given in the Banking Act 1959.

    bank means a locally incorporated ADI that is authorised under section 66 of the Banking Act 1959 to use the word 'bank' in its name.

    foreign ADI has the meaning in section 5 of the Banking Act 1959.

    CET1 deduction refers to securitisation exposures that are required to be deducted from Common Equity Tier 1 (CET1) capital in accordance with the requirements under Prudential Standard APS 120 Securitisation.

    credit rating grade means grades of credit ratings to which external credit assessment institution (ECAI) ratings are mapped. The mapping of both short-term and long-term rating grades is contained in Attachment C of Prudential Standard APS 120 Securitisation.

    due diligence requirements means the required due diligence an ADI must perform on its securitisation exposures as per paragraphs 58 and 59 of Prudential Standard APS 120 Securitisation.

    external ratings-based approach (ERBA) means the method by which an ADI calculates regulatory capital for credit risk for its securitisation exposures, where a securitisation exposure is externally rated or for which an inferred rating is available (refer to paragraphs 4 to 16 of Attachment C of Prudential Standard APS 120 Securitisation).

    immediate parent NOHC means an authorised NOHC, or a subsidiary of an authorised NOHC, that is an immediate parent.

    Level 1 has the meaning in Prudential Standard APS 001 Definitions.

    Level 2 has the meaning in Prudential Standard APS 001 Definitions.

    non-senior securitisation exposure has the meaning given to that expression in paragraph 11(n) of Prudential Standard APS 120 Securitisation.

    other CET1 regulatory adjustments means:

       (a)          any gain-on-sale, including expected future income from a securitisation exposure that an ADI reports as an on-balance sheet asset or profit, until irrevocably received;

       (b)          any funds provided by the ADI to establish a spread, reserve or similar account, until the funds are irrevocably paid to the ADI;

       (c)          the difference between the book value and amount received by the ADI, where the originating ADI transfers exposures to an SPV below their book value, unless it is written off in the ADI's profit and loss (and capital) accounts;[1]

       (d)          any positive mark-to-market value of a basis swap provided to a securitisation that the ADI has reported as an on-balance sheet asset or profit before it has been irrevocably received;

       (e)          any negative mark-to-market value of a basis