On Sep. 23, 2024, AST APRA commented briefly with respect to the remade APS 117.
It confirmed it remade APS 117 without amendment, except for a consequential change to update a reference to Prudential standard APS 001 definitions (APS 001) which has been replaced by Prudential standard 3PS 001 defined terms (3PS 001).
On Jul. 8, AST APRA proposed remake of expiring prudential standard.
AST APRA issued letter titled Interest rate risk in the banking book reporting (IRRBB) – response to submissions, which includes proposal on sunsetting current Prudential standard APS 117 capital adequacy: interest rate risk in the banking book (APS 117).
Current APS 117 sets out requirements an authorized deposit-taking institution with approval to use an internal model for interest rate risk in the banking book must meet.
Namely, for reg capital purposes, both at time of initial implementation, and ongoing.
Proposed Remake
The current APS 117 is due to sunset on Apr. 1, 2025; AST APRA proposes to leave the current APS 117 unchanged at this stage and remake it so that it will continue to apply after Apr. 1, 2025, until final revised APS 117 is effective on Oct. 1, 2025, #194624.
Subject to feedback from this consult (of Jul. 8), APRA expects to remake current APS 117 without change as a transitional measure until final revised APS 117 is effective.
Consultation End
AST APRA invites feedback on the remake of the current APS 117 by Aug. 9, 2024.
Sep. 19, 2024 AST GVT Registered Instrument
On Sep. 19, 2024, AST GVT registered Banking (prudential standard) determination no. 4 of 2024 - prudential standard APS 117 capital adequacy: interest rate risk in the banking book (APS 117) and explanatory statement, re above; in force Apr. 1, 2025.
Sep. 23, 2024 AST APRA Comments
On Sep. 23, 2024, AST APRA commented briefly with respect to the remade APS 117.
It confirmed it remade APS 117 without amendment, except for a consequential change to update a reference to Prudential standard APS 001 definitions (APS 001) which has been replaced by Prudential standard 3PS 001 defined terms (3PS 001).
