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APRA and XBRL: Renewed interest after seven years Dr Steve Davies - PowerPoint PPT Presentation

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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.

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Renewed interest after seven years

Dr Steve Davies


APRA’s role

APRA Statistics improvement program

Use of XBRL


Red tape review posed risks and opportunities


How to promote XBRL?


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.

… supervising a diverse range of institutions…





at 31 December 2008



($ billion)


taking institutions (ADIs)

Authorised deposit







Building societies




Credit unions




Other ADIs, including SCCIs



General insurers




Life insurers




Friendly societies





Superannuation funds




And collecting data from a range of non regulated institutions
and collecting data from a range of non-regulated institutions

  • Discretionary mutual funds

  • Medical defence organisations

  • Insurance intermediaries

  • Registered financial corporations

  • Wholesale funders

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.

… primarily supporting supervision agency

  • 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

… and other key decision makers agency

  • 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

Statistics improvement program agency

  • 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

    Our legislative framework gives us the authority agency

    • 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


    … and the responsibility agency

    • 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


    Direct to APRA (D2A) … agency

    • 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

    Data collections now contain agency

    • Prudential data

      • - Financial accounts

      • - Capital adequacy

      • Risk data

    • Statistical data

      • Monetary aggregates

      • National accounts

      • Market share

    Consultation ensures useful data collections agency

    • 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

    Why xbrl
    Why XBRL? agency

    • Needed format to import data and transfer data

    • Microsoft Excel problematic

    • XBRL emerging standard

    • Nothing to lose by adopting XBRL


    • Little effort to update the taxonomy with systems/processes

    • Little effort to reliably change data feeds

    • Institutions required less support from APRA

    Outcome agency

    • 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

    Rethinking regulation review
    Rethinking regulation review agency

    • 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

    Standard business reporting
    Standard Business Reporting agency

    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

    Future for apra data collection under sbr
    Future for APRA data collection under SBR agency

    • 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

    Sbr au taxonomy harmonisation
    SBR AU taxonomy harmonisation agency

    • 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.

    How much to promote xbrl
    How much to promote XBRL? agency

    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?

    Summary agency

    • 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?

    Our IT infrastructure gives us the platform agency

    This white area represents the recommended maximum area for graphics (tables, graphs, diagrams, photos)

    Example forms in d2a
    Example forms in D2A agency

    Recommended maximum area for graphics (tables, graphs, diagrams, photos)