PET - Plain English Taxonomy

Label:	Financial Risk Credit Credit Exposures Category Three Facilities Adjusted Balance Amount
TREF ID:	DE7787
Data Type:	xbrli:monetaryItemType
Period Type:	instant
Balance Type:	debit
Business Description & Guidance:	This is the adjusted balance of accounts at the relevant date that meet the provisioning requirements in accordance with the Prescribed Provisioning methodology outlined in the relevant prudential standards, but have not been classified by the reporting party as Category One, Two or Four facilities.The adjusted balance is the "Outstanding balance" (see below) offset by the amount of any collateral security held that satisfies the requirements of the relevant prudential standards, or APRA has agreed on an appropriate basis to ascribe value for security purposes.Outstanding balances should be reported net of interest and other income not taken to profit, and net of any amounts written off. For overdraft facilities and revolving lines of credit, the outstanding balance is to be reported as the total amount of the facility outstanding, and not the amount that the facility exceeds the previously approved limit. For overdrawn savings accounts, the outstanding balance represents the debit balance of the account.

Usage

Form	Labels
ARF_220_3	Label: Guidance:	Adjusted balance - Category three facilities Where an exposure falling within this category is secured by a mortgage over a residential property, the provision may be adjusted to reflect a part of the collateral value. When this occurs, the minimum provision percentage in the table shall be applied to the difference between the outstanding balance (less any loan insurance) and 70 per cent of the security value (where the exposure is 6 months or more worth of payments past due, the valuation must be no older than 12 months). Where an exposure is secured by other than residential property, an ADI may approach APRA to discuss an appropriate basis upon which to value security held. Where an exposure is otherwise secured by equivalent or better security arrangements than that described above, an ADI may, on application to APRA, seek to have the provision adjusted to reflect the whole or part of the collateral value. The following guidelines apply to these security arrangements: (a) guarantees provided by Commonwealth or State governments, or ADIs, may be deducted from the exposure at full value prior to applying the prescribed provisioning requirements; (b) crown leases involving property used for residential purposes may be adjusted in accordance with paragraph 7 of these instructions; (c) bank bills and Government Securities held as collateral if subject to enforceable security in favour of the ADI, may be deducted from the exposure at net current market value prior to applying the prescribed provisioning requirements; and (d) cash on deposit with the ADI may only be deducted for the purposes of prescribed provisioning where the deposits are secured by appropriate contractual arrangements that satisfy the eligible collateral provisions contained in Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk. A right of offset is not considered to provide appropriate security per se.

Form

Labels

ARF_220_3

Label:

Guidance:

Adjusted balance - Category three facilities
Where an exposure falling within this category is secured by a mortgage over a residential property, the provision may be adjusted to reflect a part of the collateral value. When this occurs, the minimum provision percentage in the table shall be applied to the difference between the outstanding balance (less any loan insurance) and 70 per cent of the security value (where the exposure is 6 months or more worth of payments past due, the valuation must be no older than 12 months). Where an exposure is secured by other than residential property, an ADI may approach APRA to discuss an appropriate basis upon which to value security held.
Where an exposure is otherwise secured by equivalent or better security arrangements than that described above, an ADI may, on application to APRA, seek to have the provision adjusted to reflect the whole or part of the collateral value. The following guidelines apply to these security arrangements:
(a) guarantees provided by Commonwealth or State governments, or ADIs, may be deducted from the exposure at full value prior to applying the prescribed provisioning requirements;
(b) crown leases involving property used for residential purposes may be adjusted in accordance with paragraph 7 of these instructions;
(c) bank bills and Government Securities held as collateral if subject to enforceable security in favour of the ADI, may be deducted from the exposure at net current market value prior to applying the prescribed provisioning requirements; and
(d) cash on deposit with the ADI may only be deducted for the purposes of prescribed provisioning where the deposits are secured by appropriate contractual arrangements that satisfy the eligible collateral provisions contained in Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk. A right of offset is not considered to provide appropriate security per se.