1 / 25

APRA and XBRL: Renewed interest after seven years Dr Steve Davies

APRA and XBRL: Renewed interest after seven years Dr Steve Davies. Overview. APRA’s role APRA Statistics improvement program Use of XBRL Outcome Red tape review posed risks and opportunities APRA and SBR How to promote XBRL?. 2. APRA is the integrated prudential regulator.

porter
Download Presentation

APRA and XBRL: Renewed interest after seven years Dr Steve Davies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. APRA and XBRL: Renewed interest after seven years Dr Steve Davies

  2. Overview APRA’s role APRA Statistics improvement program Use of XBRL Outcome Red tape review posed risks and opportunities APRA and SBR How to promote XBRL? 2

  3. APRA is the integrated prudential regulator APRA’s role is to promote prudent behaviour of financial institutions to enhance public confidence. APRA must balance financial safety with efficiency, competition, contestability and competitive neutrality.

  4. … supervising a diverse range of institutions… APRA - regulated entities at 31 December 2008 Number Assets ($ billion) - taking institutions (ADIs) Authorised deposit 200 2,755 .8 Banks 59 2,649.4 Building societies 1 1 21.0 Credit unions 1 22 45.4 Other ADIs, including SCCIs 8 10.0 General insurers 13 1 93.4 Life insurers 3 2 210.4 Friendly societies 2 3 6.2 595.0 Superannuation funds 5, 097 4

  5. … and collecting data from a range of non-regulated institutions • Discretionary mutual funds • Medical defence organisations • Insurance intermediaries • Registered financial corporations • Wholesale funders

  6. APRA has become a national financial sector statistics agency Our vision is of a prudentially well-managed, stable, efficient and competitive finance sector brought about through well-informed decision making. Our mission is to provide essential information and analysis on Australia’s financial sector that is deservedly trusted and used by APRA, other regulators, policymakers, researchers, industry and the public.

  7. … primarily supporting supervision • We provide supervisors with: • Timely access to accurate returns from entities • Time-series and peer-group reports for analysis • The capability to create own reports • Information on compliance of entities • Responses from entities to queries

  8. … and other key decision makers • We provide the RBA and ABS with daily data feeds • We publish statistics on each regulated industry to inform policymakers, the industry, researchers, analysts & public • We provide senior management of regulated entities with supervisory reports for them to track their performance • We provide customised statistics on request

  9. Statistics improvement program • 2000-2001 Developed infrastructure • New legislative framework • New IT systems • 2001-now Introduced modern data collections and • kept them up to date, eg IFRS, Basel II • 2004-now Focus on data quality and use of the data 9

  10. Our legislative framework gives us the authority • Financial Sector (Collection of Data) Act 2001 • - APRA can determine reporting requirements • - Reporting entities must lodge on time • - APRA can ask questions • - APRA can require amendments • - Non-compliance is an offence • - APRA can impose penalties 10

  11. … and the responsibility • Secrecy provisions of APRA Act 1998 • - APRA must treat data as strictly confidential • - APRA can pass data onto RBA and ABS • - APRA can pass onto others with permission • - APRA can determine data to be non-confidential after due consultation 11

  12. Direct to APRA (D2A) … • Provides secure encryption • Uses digital certificates for authentication and authorisation • Only downloads relevant forms • Allows import of data from host systems • Validates data prior to submission • Allows retrieval of previously submitted data

  13. Data collections now contain • Prudential data • - Financial accounts • - Capital adequacy • Risk data • Statistical data • Monetary aggregates • National accounts • Market share

  14. Consultation ensures useful data collections • Internal APRA consultation • - for relevance to supervision • Tripartite Data Committee • - to integrate requirements of RBA and ABS • Consultation with industry • - to ensure data are collectable in practice

  15. Why XBRL? • Needed format to import data and transfer data • Microsoft Excel problematic • XBRL emerging standard • Nothing to lose by adopting XBRL Also • Little effort to update the taxonomy with systems/processes • Little effort to reliably change data feeds • Institutions required less support from APRA

  16. Outcome • All but two institutions submit electronically using D2A • Over 95% lodge on time and remainder within days • A lot of effort ensures data quality • Many banks use Excel to produce XBRL for D2A, although bulk lodgers are the main beneficiaries • XBRL taxonomy requires little maintenance within APRA and RBA/ABS

  17. Rethinking regulation review • In 2006, the Government review into regulatory burden made recommendations to: • develop a business reporting standard • eliminate overlaps in information provided to regulators • establish an integrated data collection portal • Standard Business Reporting was born

  18. Standard Business Reporting Over $200m multi-agency programme to: • harmonise financial reporting from business-to-government into a single national taxonomy • provide core IT services (routing, not sharing data) • provide single authentication credential Primarily aimed at small/medium businesses through software vendors and intermediaries Expected $800m per year saving to the economy

  19. Future for APRA data collection under SBR • D2A stays • Need to upgrade D2A to XBRL version 2.1 • Harmonise APRA’s 40,000 items into SBR taxonomy • Replace authentication in D2A with SBR authentication • Stay harmonised

  20. SBR AU taxonomy harmonisation • Over 9,000 items from around 90 forms across twelve federal and state agencies in scope. This reduced to less than 3,000 items. • APRA’s component reduced from 3,300 to 1,200 items. • Most reduction came from dimensions, contexts and within-agency harmonisation. Less from across-agency harmonisation.

  21. How much to promote XBRL? Potential benefits for institutions: • Opportunity for financial institutions to use SBR for customer data • Taxonomy discipline will reduce unnecessary duplication in reporting – use it or lose it • Lower costs in aggregation/common software • Guarantee? • Competitors data available in XBRL feed? Help? Case studies?

  22. Summary • APRA is integrated prudential regulator and national financial sector statistics agency • Implemented integrated suite of systems, legislation & reporting requirements • Used XBRL because no downside and low maintenance • All institutions voluntarily use D2A, some use XBRL • Red tape review posed risks and opportunities • APRA now harmonising with SBR • How should best promote uptake by financial institutions?

  23. Our IT infrastructure gives us the platform This white area represents the recommended maximum area for graphics (tables, graphs, diagrams, photos)

  24. Example forms in D2A Recommended maximum area for graphics (tables, graphs, diagrams, photos)

  25. Example: daily feed to RBA in XBRL

More Related