Document ID: chunk:federal_register_of_legislation:F2024L01182:body:0:p2
Version: federal_register_of_legislation:F2024L01182
Segment Type: other
Provision Reference: 
Character Range: 3382–6458

to comply with some or all of the requirements in this Prudential Standard.
 2.              A reference to an ADI in this Prudential Standard, unless otherwise indicated, is a reference to:
         1.           an ADI on a Level 1 basis; and
         2.           a group of which an ADI is a member on a Level 2 basis.
 3.              If an ADI to which this Prudential Standard applies is:
         1.           the holding company for a group, the ADI must ensure that the requirements in this Prudential Standard are met on a Level 2 basis, where applicable; or
         2.           a subsidiary of an authorised non-operating holding company (authorised NOHC), the authorised NOHC must ensure that the requirements in this Prudential Standard are met on a Level 2 basis, where applicable.
 1.              A non-significant financial institution (non-SFI) does not have to comply with the requirements in paragraphs 17 to 63, and Attachment A to this Prudential Standard, unless otherwise required by APRA under paragraph 16 of this Prudential Standard.
 2.              An ADI that has IRRBB model approval must satisfy all of the requirements set out in this Prudential Standard. Significant Financial Institutions (SFIs) that do not have IRRBB model approval must satisfy all of the requirements in this Prudential Standard with the exception of paragraphs 47(b), 57, 60, 62, 63, and Attachment A, unless otherwise required by APRA under paragraph 16 of this Prudential Standard, in a way that is commensurate with the nature, scale and complexity of the ADI's operations.
 1.              This Prudential Standard commences on 1 October 2025.

Interpretation
 1.              Terms that are defined in Prudential Standard CPS 001 Defined terms appear in bold the first time they are used in this Prudential Standard.
 2.              Where this Prudential Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.
 3.          In this Prudential Standard, unless the contrary intention appears, a reference to an Act, Regulations or Prudential Standard is a reference to the Act, Regulations or Prudential Standard as in force from time to time.

Definitions
 1.          The following definitions are used in this Prudential Standard:
         1.           approved IRRBB model – means a currently APRA-approved internal model for determining an ADI's IRRBB capital charge;
         2.           banking book – an ADI's banking book is comprised of:
                 1.             on-balance sheet asset, liability or equity items that are:
                         1.         not part of an ADI's trading book, as determined under the ADI's trading book policy statement (refer to Attachment A to Prudential Standard APS 116 Capital Adequacy: Market Risk (APS 116));
                         2.         not deducted from an ADI's Common Equity Tier 1 Capital under Prudential Standard APS 111 Capital Adequacy: Measurement of Capital (APS 111); and
                         3.         not included in