Document ID: chunk:federal_register_of_legislation:F2024L01074:body:0:p2
Version: federal_register_of_legislation:F2024L01074
Segment Type: other
Provision Reference: 
Character Range: 2914–6039

of collateral and credit risk mitigation
Attachment F - Risk-weighted assets for purchased receivables
Attachment G - Supervisory slotting criteria

Authority
 1.              This Prudential Standard is made under section 11AF of the Banking Act 1959 (Banking Act).

Application and commencement
 1.              This Prudential Standard applies to authorised deposit-taking institutions (ADIs) that are seeking, or have been approved, to use an internal ratings-based (IRB) approach to credit risk for the purpose of determining the Regulatory Capital requirement for credit risk.
 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.
 4.              This Prudential Standard commences on 30 September 2024.

Interpretation
 1.              Terms that are defined in Prudential Standard APS 001 Definitions or 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, the 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.

Adjustments and exclusions
 1.              APRA may adjust or exclude a specific prudential requirement in this Prudential Standard in relation to one or more specified ADIs or authorised NOHCs.[1]

Previous exercise of discretion
 1.          An exercise of APRA's discretion (such as an approval, waiver or direction) under a previous version of this Prudential Standard continues to have effect as though exercised pursuant to a corresponding power (if any) exercisable by APRA under this Prudential Standard.

Scope
 1.          The following items are excluded from the scope of this Prudential Standard:
        1.           non-standard retail residential mortgage exposures,[2] equity exposures, margin lending exposures, cash items, fixed assets, unsettled and failed transactions, and related-party exposures that are subject to the requirements of Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112);
        2.           assets or investments that are required to be deducted from Common Equity Tier 1 Capital, Tier 1 Capital or Total Capital under Prudential Standard APS 111 Capital