# GRF_116_1 Probable Maximum Loss for LMIs - Standard Loans

Save this PDF as:

Size: px
Start display at page:

## Transcription

2 The inclusion of a First Home Owners Grant in the deposit for a mortgaged property will not otherwise increase the LVR of a loan. LMIs are required to report the sum insured according to the following categories: LVR of less than 60.01, to 70, to 80, to 85, to 90, to 95, to 100, and greater than 100 per cent. Report the relevant category by selecting the appropriate lower and upper bound percentages in Columns 1 and 2. (2) LVR less than or equal to (%) The Loan-to-Valuation Ratio (LVR) is the ratio of the amount of the loan to the value of the secured residential property, as at the date of origination of the loan. Where the mortgage insurance premium is capitalised in the loan amount, the LVR must be calculated including the premium; that is, the loan amount must be increased by the amount of the capitalised premium, irrespective of whether the premium is insured. The inclusion of a First Home Owners Grant in the deposit for a mortgaged property will not otherwise increase the LVR of a loan. LMIs are required to report the sum insured according to the following categories: LVR of less than 60.01, to 70, to 80, to 85, to 90, to 95, to 100, and greater than 100 per cent. Report the relevant category by selecting the appropriate lower and upper bound percentages in Columns 1 and 2. (3) Coverage proportion (%) This is the percentage of cover for which the insurance provides over the loan amount. Select from the appropriate coverage proportion percentage: 20, 25, 30, 35, 40 or 100 per cent." (4.1) < 3 years (4.2) 3 < 5 years (4.3) 5 < 10 years (4.4) >= 10 years Age is the length of time from the date of origination of the loan to the date of calculation for the purposes of determining the seasoning factors in Attachment A of GPS 116. Report the sums insured for the LMI policies according to the following categories: age of less than three years, three to less than five years, five to less than 10 years, and more than 10 years. (5) Total sum insured The sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy. GRF Instructions - 2

3 It is automatically calculated as the sum of Columns 4.1 to 4.4 multiplied by their corresponding seasoning factors. (6) PD factor The probability of default (PD) is the risk of default by the borrower. It varies according to LVR as per Attachment A of GPS 116. This is automatically determined from the LVR percentages in Columns 1 and 2. (7) LGD factor (100% cover) Loss given default (LGD) is the loss to the LMI upon default by the borrower. It varies according to LVR as per Attachment A of GPS 116. The LGD factors are for 100% cover. This is automatically determined from the LVR percentages in Columns 1 and 2. (8) LGD factor (top cover) This is the LGD factor for top cover. It is automatically calculated as Column 7 divided by Column 3, subject to a maximum of 100%. (9) PML For each individual LMI policy, the probable maximum loss (PML) is the sum insured multiplied by the seasoning, PD and LGD factors applicable to the policy. It is determined in accordance with Attachment A of GPS 116. It is automatically calculated as Column 5 multiplied by Column 6 multiplied by Column 8. Sections 1 and and 2.2: Pool cover (1) Weighted-average LVR (%) Input the weighted-average LVR as a percentage for each pool. The weighted-average LVR should be calculated outside of the reporting forms and should not be based on summarised data. (2) Weighted-average age Input the weighted-average age (in years) for each pool. The weighted-average age should be calculated outside of the reporting forms and should not be based on summarised data. (3) Seasoning factor This is the seasoning factor corresponding to the weighted-average age of the pool. It is automatically determined from the weighted-average age in Column 2. GRF Instructions - 3

4 (4) Total sum insured Report the sum insured for pools of loans. The sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy. (5) PD factor This is the PD corresponding to the weighted-average LVR of the pool. It is automatically determined from the weighted average LVR percentage in Column 1. (6) LGD factor This is the LGD corresponding to the weighted-average LVR of the pool. It is automatically determined from the weighted-average LVR percentage in Column 1. (7) PML This is automatically calculated as Column 4 multiplied by Column 3 multiplied by Column 5 multiplied by Column 6. GRF Instructions - 4

5 GRF_116_2 Probable Maximum Loss for LMIs - Non- Standard Loans These instructions must be read in conjunction with the general instruction guide. Explanatory notes Non-standard loan A non-standard loan is a loan predominantly secured by residential property which does not meet the criteria for a standard loan as defined in Attachment A of GPS 116 and/or where APRA has given a direction that the loan should be classified as a nonstandard loan. 100% cover 100% cover provides insurance for 100% of the loan amount. Top cover Top cover provides insurance for less than 100% of the loan amount. Pool cover A pooled LMI policy, or pool cover, is lenders mortgage insurance underwritten and issued in respect of a pool of loans. For clarity, each loan is not individually insured. Section 1: ADI Report in this section information relating to loans approved, advanced and funded by an Authorised Deposit-taking Institution (ADI). An ADI has an in force authority under subsection 9(3) of the Banking Act Section 2: Non-APRA regulated Report in this section information relating to loans approved, advance and funded by entities that are not ADIs. GRF Instructions - 1

6 Instructions for specific items Sections 1 and and 2.1: 100 per cent and top cover (1) LVR greater than (%) The Loan-to-Valuation Ratio (LVR) is the ratio of the amount of the loan to the value of the secured residential property, as at the date of origination of the loan. Where the mortgage insurance premium is capitalised in the loan amount, the LVR must be calculated including the premium; that is, the loan amount must be increased by the amount of the capitalised premium, irrespective of whether the premium is insured. The inclusion of a First Home Owners Grant in the deposit for a mortgaged property will not otherwise increase the LVR of a loan. Lenders mortgage insurers (LMIs) are required to report the sum insured according to the following categories: LVR of less than 60.01, to 70, to 80, to 85, to 90, to 95, to 100, and greater than 100 per cent. Report the relevant category by selecting the appropriate lower and upper bound percentages in Columns 1 and 2. (2) LVR less than or equal to (%) The Loan-to-Valuation Ratio (LVR) is the ratio of the amount of the loan to the value of the secured residential property, as at the date of origination of the loan. Where the mortgage insurance premium is capitalised in the loan amount, the LVR must be calculated including the premium; that is, the loan amount must be increased by the amount of the capitalised premium, irrespective of whether the premium is insured. The inclusion of a First Home Owners Grant in the deposit for a mortgaged property will not otherwise increase the LVR of a loan. Lenders mortgage insurers (LMIs) are required to report the sum insured according to the following categories: LVR of less than 60.01, to 70, to 80, to 85, to 90, to 95, to 100, and greater than 100 per cent. Report the relevant category by selecting the appropriate lower and upper bound percentages in Columns 1 and 2. (3) Coverage proportion (%) This is the percentage of cover for which the insurance provides over the loan amount. Select from the appropriate coverage proportion percentage: 20, 25, 30, 35, 40 or 100 per cent. GRF Instructions - 2

7 (4.1) < 3 years (4.2) 3 < 5 years (4.3) 5 < 10 years (4.5) >= 10 years Age is the length of time from the date of origination of the loan to the date of calculation for the purposes of determining the seasoning factors in Attachment A of GPS 116. Report the sums insured for the LMI policies according to the following categories: age of less than three years, three to less than five years, five to less than 10 years, and more than 10 years. (5) Total sum insured The sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy. It is automatically calculated as the sum of Columns 4.1 to 4.4 multiplied by their corresponding seasoning factors. (6) PD factor The probability of default (PD) is the risk of default by the borrower. It varies according to LVR as per Attachment A of GPS 116. This is automatically determined from the LVR percentages in Columns 1 and 2. (7) LGD factor (100% cover) Loss given default (LGD) is the loss to the LMI upon default by the borrower. It varies according to LVR as per Attachment A of GPS 116. The LGD factors are for 100% cover. This is automatically determined from the LVR percentages in Columns 1 and 2. (8) LGD factor (top cover) This is the LGD factor for top cover. It is automatically calculated as Column 7 divided by Column 3, subject to a maximum of 100%. (9) PML For each individual LMI policy, the probable maximum loss (PML) is the sum insured multiplied by the seasoning, PD and LGD factors applicable to the policy. It is determined in accordance with Attachment A of GPS 116. It is automatically calculated as Column 5 multiplied by Column 6 multiplied by Column 8. GRF Instructions - 3

8 Sections 1 and and 2.2: Pool cover (1) Weighted-average LVR (%) Input the weighted-average LVR as a percentage for each pool. The weighted-average LVR should be calculated outside of the reporting forms and should not be based on summarised data. (2) Weighted-average age Input the weighted-average age (in years) for each pool. The weighted-average age should be calculated outside of the reporting forms and should not be based on summarised data. (3) Seasoning factor This is the seasoning factor corresponding to the weighted-average age of the pool. It is automatically determined from the weighted-average age in Column 2. (4) Total sum insured Report the sum insured for pools of loans. The sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy. (5) PD factor This is the PD corresponding to the weighted-average LVR of the pool. It is automatically determined from the weighted average LVR percentage in Column 1. (6) LGD factor This is the LGD corresponding to the weighted-average LVR of the pool. It is automatically determined from the weighted-average LVR percentage in Column 1. (7) PML This is automatically calculated as Column 4 multiplied by Column 3 multiplied by Column 5 multiplied by Column 6. GRF Instructions - 4

9 GRF_116_3 Probable Maximum Loss for LMIs - Commercial Loans These instructions must be read in conjunction with the general instruction guide. Explanatory notes Commercial loan A commercial loan is a loan that is not predominantly secured by a registered mortgage over residential property, and/or where APRA has given a direction that the loan should be classified as a commercial loan. Instructions for specific items (1) Factor The probable maximum loss (PML) for a commercial loan is the sum insured multiplied by 8%. (2) ADI Report the sum insured for individual lenders mortgage insurer (LMI) policies insuring commercial loans that are approved, advanced and funded by an authorised deposit-taking institution (ADI). (3) Non-APRA regulated Report the sum insured for individual LMI policies insuring commercial loans that are approved, advanced and funded by a non-adi. (4) Total sum insured The sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy. (5) PML This is automatically calculated as Column 4 multiplied by Column 1. GRF Instructions - 1

10 GRF_116_4 LMI Concentration Risk Charge These instructions must be read in conjunction with the general instruction guide. Instructions for specific items (4) Summary These columns represent the total sum insured and probable maximum losses (PMLs) across all loans types, coverage types and origination channels. Amounts are automatically derived from corresponding amounts in GRF Probable Maximum Loss for LMIs Standard Loans (GRF 116.1), GRF Probable Maximum Loss for LMIs Non-Standard Loans (GRF 116.2) and GRF Probable Maximum Loss for LMIs Commercial Loans (GRF 116.3). 1.1 Standard loans This is automatically calculated as the sum of Items to ADI per cent and top cover This amount is automatically derived from Columns 5 and 9 of Table 1.1 in GRF ADI - pool cover This amount is automatically derived from Columns 4 and 7 of Table 1.2 in GRF Non-APRA regulated per cent and top cover This amount is automatically derived from Columns 5 and 9 of Table 2.1 in GRF Non-APRA regulated - pool cover This amount is automatically derived from Columns 4 and 7 of Table 2.2 in GRF Non-standard loans This is automatically calculated as the sum of Items to ADI per cent and top cover This amount is automatically derived from Columns 5 and 9 of Table 1.1 in GRF GRF Instructions - 1

11 1.2.2 ADI - pool cover This amount is automatically derived from Columns 4 and 7 of Table 1.2 in GRF Non-APRA regulated per cent and top cover This amount is automatically derived from Columns 5 and 9 of Table 2.1 in GRF Non-APRA regulated - pool cover This amount is automatically derived from Columns 4 and 7 of Table 2.2 in GRF Commercial loans This is automatically calculated as the sum of Items and ADI This amount is automatically derived from GRF Non-APRA regulated This amount is automatically derived from GRF Total This is automatically calculated as the sum of Items 1.1, 1.2 and 1.3. (5) LMI Concentration Risk Charge (LMICRC) calculation This represents the years for the Prescribed Stress Scenario which is in the form of a three-year economic or property downturn. The PML must be allocated in the proportion of 25 per cent to year one, 50 per cent to year two and 25 per cent to year three of the downturn PML This represents the total PML across all loan types, coverage types and origination channels. Total PML is automatically allocated in the proportions of 25 per cent to year one, 50 per cent to year two and 25 per cent to year three of the Prescribed Stress Scenario Adjustment to the PML For a lenders mortgage insurer (LMI) no longer writing new business (i.e. in run-off), the sum insured is expected to decrease over the three-year scenario and it may be appropriate for an LMI in run-off to adjust its PML downwards. The methodology for adjusting an LMI s PML in a run-off situation must be approved by APRA and documented in the LMI s Reinsurance Management Strategy (ReMS). GRF Instructions - 2

12 A reduction in PML is to be entered as a positive amount. Do not enter any other adjustments to PML in this field Adjusted PML This is automatically calculated as Item 2.1 less Item Available reinsurance Report the amount of available reinsurance for each of the three years of the Prescribed Stress Scenario. The methodology for calculating available reinsurance is detailed in Attachment A of GPS Allowable reinsurance This is the lesser of Available reinsurance and 60 per cent of the Adjusted PML. It is automatically calculated by the form PML net of reinsurance This is automatically calculated as Item 2.3 less Item Net premiums liability deduction In determining the LMI Concentration Risk Charge (LMICRC), this is the value of the deduction from the PML, allowed under GPS 116, for net premiums liability of the LMI that relates to an economic downturn. It is to be reported as a positive amount Adjustments to LMICRC as approved by APRA If APRA is of the view that the Standard Method for calculating the LMICRC component of the prescribed capital amount does not produce an appropriate outcome in respect of a reporting insurer, or a reporting insurer has used inappropriate judgement or estimation in calculating the LMICRC, APRA may adjust the LMICRC calculation for that reporting insurer. An increase in the LMICRC is to be reported as a positive amount LMI Concentration Risk Charge This is automatically calculated as Item 2.6 less Item 2.7 plus Item LMI Concentration Risk Charge / PML This is automatically calculated as Item 2.9 divided by Item 2.3. GRF Instructions - 3

13 GRF_116_5: Probable Maximum Loss for LMIs Additional Information These instructions must be read in conjunction with the general instruction guide. Explanatory notes Section 1: Inwards reinsurance This section relates to policies held with the insurer by other lenders mortgage insurers (LMIs). Section 2: Large liability exposures by originator Information is to be reported in this section for the five largest liability exposures by originator. Calculation of LMICRC The information on this form will not directly affected the calculation of the LMI concentration risk charge Specific reporting instructions Section 1: 1.1 (1) LVR greater than (%) (2) LVR less than or equal to (%) (3) Coverage proportion (%) (4.1.) < 3 years (4.2.) 3 < 5 years (4.3.) 5 < 10 years (4.4.) >= 10 years Refer to instructions for the corresponding columns in Section 1: 1.1 of GRF (5) Total inwards reinsurance Report the total inwards reinsurance exposure for the LMI relating to 100 per cent and top cover loans. This is automatically calculated as the sum of Columns 4.1 to 4.4 multiplied by their corresponding seasoning factors. GRF Instructions - 1

14 (6) Of which non-apra regulated Report the total inwards reinsurance exposure relating to policies insuring 100 per cent and top cover loans that are approved, advanced and funded by non-adis. (7) Of which non-standards loans Report the total inwards reinsurance exposure relating to policies insuring nonstandard, 100 per cent and top cover loans. Section 1: 1.2 (1) Weighted average LVR (%) (2) Weighted-average age Refer to instructions for the corresponding columns in Section 1: 1.2 of GRF (3) Total inwards reinsurance Report the total inwards reinsurance exposure for the LMI relating to pool cover loans. (4) Of which non-apra regulated Report the total inwards reinsurance exposure relating to policies insuring pool cover loans that are approved, advanced and funded by non-adis. (5) Of which non-standard loans Report the total inwards reinsurance exposure relating to policies insuring nonstandard, pool cover loans. Section 1: 1.3 (1) Total inwards reinsurance Report the total inwards reinsurance exposure for the LMI relating to commercial loans. (2) Of which non-apra regulated Report the total inwards reinsurance exposure relating to policies insuring commercial loans that are approved, advanced and funded by non-adis. GRF Instructions - 2

15 Section 1: 1.4 (1) Total inwards reinsurance This is automatically calculated as the sum of Column 5 of 1.1, Column 3 of 1.2 and Column 1 of 1.3. (2) Of which non-apra regulated This is automatically calculated as the sum of Column 6 of 1.1, Column 4 of 1.2 and Column 2 of 1.3. (3) Of which non-standards loans This is automatically calculated as the sum of Column 7 of 1.1 and Column 5 of 1.2. Section 2 (1) Large exposures This indicates the ranking of the five largest liability exposures by a number from 1 to 5. (2) Originator Report the name of the originator. (3) ACN / ABN Where relevant, this column reports the Australian Company Number (ACN) of the originator reported in column 2. In cases where the originator doesn t have an ACN but it does have an Australian Business Number (ABN) or an Australian Registered Body Number (ARBN), the ABN or ARBN should be reported. If the originator does not have an ACN, ABN, or ARBN the column should be left blank. Input the number without spaces. (4) Sum insured Report the total sum insured for the originator. (5) Open policy (%) Open policy is a legal arrangement whereby a lender is given direct underwriting control for mortgage insurance policies without reference to the LMI, subject to the transaction meeting certain underwriting requirements. Report the percentage of insurance policies, by value, written under open policy GRF Instructions - 3

### Discussion Paper. Maximum Event Retention for Lenders Mortgage Insurers. www.apra.gov.au Australian Prudential Regulation Authority.

Discussion Paper Maximum Event Retention for Lenders Mortgage Insurers September 2008 www.apra.gov.au Australian Prudential Regulation Authority Disclaimer and copyright This prudential practice guide

### GRF_115_0A_G: Outstanding Claims Liabilities - Insurance Risk Charge - Australia by Class of Business (G)

GRF_115_0A_G: Outstanding Claims Liabilities - Insurance Risk Charge - Australia by Class of Business (G) These instructions must be read in conjunction with the general instruction guide. Explanatory

### Capital Adequacy Calculation Workbook Level 1 general insurers

Capital Adequacy Calculation Workbook Level 1 general insurers Instruction Guide Introduction APRA released revised capital standards for Level 1 general insurers on 31 May 2012 1. The main changes specified

### GRF_115_1: Premiums Liabilities - Insurance Risk Charge

GRF_115_1: Premiums Liabilities - Insurance Risk Charge These instructions must be read in conjunction with the general instruction guide. Explanatory notes Direct business Sections 1A, 1B and 1C are to

### Maximum Event Retention and Risk Charge for Lenders Mortgage Insurers

Reporting Standard GRS 170.1 Maximum Event Retention and Risk Charge for Lenders Mortgage Insurers Objective This reporting standard is made under section 13 of the Financial Sector (Collection of Data)

### Outstanding Claims Liability Insurance Risk Charge Australia by class of. business (Level 2 Insurance Group)

Reporting Form GRF 210.0A_G Outstanding Claims Liability Insurance Risk Charge Australia by class of business (Level 2 Insurance Group) Instruction Guide Introduction This instruction guide is designed

### DRAFT May 2012. Objective and key requirements of this Prudential Standard

Prudential Standard GPS 230 Reinsurance Management Objective and key requirements of this Prudential Standard This Prudential Standard requires a general insurer and a Level 2 insurance group to maintain,

### FIIG ESSENTIALS GUIDE. Residential Mortgage Backed Securities

FIIG ESSENTIALS GUIDE Residential Mortgage Backed Securities Introduction Residential Mortgage Backed Securities (RMBS) are debt securities that are secured by a pool of home loans. RMBS are a subset

### GRF_310_0_G Income Statement (G)

GRF_310_0_G Income Statement (G) These instructions must be read in conjunction with the general instruction guide. Explanatory notes Total business For each line item where the data for individual regions

### Guidance Note AGN 112.1 Risk-Weighted On-Balance Sheet Credit Exposures

Guidance Note AGN 112.1 Risk-Weighted On-Balance Sheet Credit Exposures Attachment C Eligible Residential Mortgages For capital adequacy purposes, a loan for housing or other purposes to an individual

### Statistics. Quarterly Authorised Deposit-taking Institution Property Exposures. March 2014 (released 27 May 2014)

Statistics Quarterly Authorised Deposit-taking Institution Property Exposures March 2014 (released 27 May 2014) www.apra.gov.au Australian Prudential Regulation Authority Copyright Australian Prudential

### Capital Adequacy: Asset Risk Charge

Prudential Standard LPS 114 Capital Adequacy: Asset Risk Charge Objective and key requirements of this Prudential Standard This Prudential Standard requires a life company to maintain adequate capital

### 2 COMMENCEMENT DATE 5 3 DEFINITIONS 5 4 MATERIALITY 8. 5 DOCUMENTATION 9 5.1 Requirement for a Report 9 5.2 Content of a Report 9

PROFESSIONAL STANDARD 300 VALUATIONS OF GENERAL INSURANCE CLAIMS INDEX 1 INTRODUCTION 3 1.1 Application 3 1.2 Classification 3 1.3 Background 3 1.4 Purpose 4 1.5 Previous versions 4 1.6 Legislation and

### DRAFT September 2007. specified in the ADI s IRB approval, application of the FIRB approach to one or more of its SL sub-asset classes.

Reporting Form ARF 113.0E FIRB Specialised Lending Instruction Guide This instruction guide is designed to assist in the completion of the FIRB Specialised Lending form. This form captures the credit risk-weighted

### POLICY POSITION PAPER ON THE PRUDENTIAL TREATMENT OF CAPITALISED EXPENSES

POLICY POSITION PAPER ON THE PRUDENTIAL TREATMENT OF CAPITALISED EXPENSES RESULTS OF A SURVEY OF AUTHORISED DEPOSIT-TAKING INSTITIONS, UNDERTAKEN BY THE AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY June

### There are three specific matters that we particularly wish to bring to the Panel's attention:

31 March 2014 David Murray AO Financial System Inquiry GPO Box 89 Sydney NSW, 2001 QBE Insurance (Australia) Limited ABN 78 003 191 035 Level 06 85 Harrington Street SYDNEY NSW 2000 Australia Postal Address

### Please find attached an announcement and supplementary information for release to the market.

QBE INSURANCE GROUP LIMITED ABN 28 008 485 014 Head Office 82 Pitt Street Sydney NSW 2000 AUSTRALIA 14 August 2008 The Manager Company Announcements ASX Limited Level 6 Exchange Centre 20 Bridge Street

### Statistics. Quarterly Life Insurance Performance XXXXX 2008 (issued XX XXXXX 2009) Australian Prudential Regulation Authority. www.apra.gov.

Statistics Quarterly Life Insurance Performance XXXXX 2008 (issued XX XXXXX 2009) www.apra.gov.au Australian Prudential Regulation Authority Copyright Commonwealth of Australia This work is copyright.

### PROPOSED CHANGES TO THE RISK-WEIGHTING OF RESIDENTIAL MORTGAGE LENDING DISCUSSION PAPER

PROPOSED CHANGES TO THE RISK-WEIGHTING OF RESIDENTIAL MORTGAGE LENDING DISCUSSION PAPER November 2003 TABLE OF CONTENTS Summary. 2 Background 3 Treatment of Low Doc Loans.... 4 The use of brokers and other

### RE: Genworth Response to Final Report of the Financial System Inquiry

Senior Advisor Financial System and Services Division The Treasury Langton Crescent Parkes ACT 2600 Level 26 101 Miller Street North Sydney NSW 2060 Australia Tel 1300 655 422 Fax 1300 662 228 genworth.com.au

### In completing these forms, Level 3 Heads must refer to Prudential Standard 3PS 110 Capital Adequacy (3PS 110).

Reporting Form 3RF 110.0 Level 3 Prescribed Capital Amount Instructions These instructions assist completion of Reporting Form 3RF 110.0 Level 3 Prescribed Capital Amount (3RF 110.0). 3RF 110.0 collects

### GRF_310_2 Claims Expense and Reinsurance Recoveries

GRF_310_2 Claims Expense and Reinsurance Recoveries These instructions must be read in conjunction with the general instruction guide. Explanatory notes Direct business Section 1 is to be completed for

### FINANCIAL SYSTEM INQUIRY: LENDERS MORTGAGE INSURANCE

Mr David Murray AO Chair Financial System Inquiry GPO Box 89 SYDNEY NSW 2001 26 August 2014 Dear Mr Murray FINANCIAL SYSTEM INQUIRY: LENDERS MORTGAGE INSURANCE The Insurance Council of Australia 1 (Insurance

### BASEL III PILLAR 3 CAPITAL ADEQUACY AND RISKS DISCLOSURES AS AT 30 SEPTEMBER 2015

BASEL III PILLAR 3 CAPITAL ADEQUACY AND RISKS DISCLOSURES AS AT 30 SEPTEMBER 2015 COMMONWEALTH BANK OF AUSTRALIA ACN 123 123 124 5 NOVEMBER 2015 This page has been intentionally left blank Introduction

### Intended changes to BS2A/B in respect of residential mortgage loans

Intended changes: capital treatment of Intended changes to BS2A/B in respect of Changes to the definition of loan in BS2A/B Definition of loan: section 4.7 of BS2B and section 43(e) of BS2A. Residential

### Prudential Standard GPS 001. Definitions. Objective and key requirements of this Prudential Standard. January 20132015

Prudential Standard GPS 001 Definitions Objective and key requirements of this Prudential Standard This Prudential Standard defines key terms referred to in other prudential standards applicable to general

### Asset Allocation and Members Benefits Flows

Reporting Standard SRS 533.1 Asset Allocation and Members Benefits Flows Objective of this Reporting Standard This Reporting Standard sets out the requirements for the provision of information to APRA

### 18,343 18,308 3 Accumulated other comprehensive income (and other reserves)

The information in this report is prepared quarterly based on the ADI financial records. The financial records are not audited for the Quarters ended 30 September, 31 December and 31 March. The report

### DRAFT May 2012. Objective and key requirements of this Prudential Standard

Prudential Standard LPS 340 Valuation of Policy Liabilities Objective and key requirements of this Prudential Standard The ultimate responsibility for the value of a life company s policy liabilities rests

### Objectives and key requirements of this Prudential Standard

Prudential Standard LPS 001 Definitions Objectives and key requirements of this Prudential Standard This Prudential Standard defines key terms referred to in other Prudential Standards applicable to life

### APRA s Perspective on the Residential Mortgage Lending Market. Submission to the House of Representatives Standing Committee on Economics

APRA s Perspective on the Residential Mortgage Lending Market Submission to the House of Representatives Standing Committee on Economics 18 July 2008 Purpose This submission provides APRA s perspective

### CommInsure Capital Adequacy Disclosure. Version 1 Dated: 30 June 2014

CommInsure Capital Adequacy Disclosure Version 1 Dated: 30 June 2014 CommInsure CommInsure is a registered business name under which the insurance companies in the Commonwealth Bank Group (the Group) conduct

### Objective and key requirements of this Prudential Standard

Prudential Standard GPS 001 Definitions Objective and key requirements of this Prudential Standard The purpose of this Prudential Standard is to define key terms referred to in other Prudential Standards

### GE Capital Finance Australia APS 330: Public Disclosure of Prudential Information December 2013 (AUD \$ million)

December 2013 (AUD \$ million) Important Notice This document has been prepared to meet the disclosure obligations under the Australian Prudential Regulation Authority (APRA) APS 330 Capital Adequacy: Public

### Interim Capital Requirements for Mortgage Insurance Companies

Advisory Subject: for Category: Capital Date: January 1, 2015 I. Introduction This Advisory sets out the regulatory capital adequacy requirements for federally regulated mortgage insurance companies and

### Reporting Standard GRS 130.0 (2005) Off-Balance Sheet Business Credit Substitutes Provided and Risk Charge

Reporting Standard GRS 130.0 (2005) Off-Balance Sheet Business Credit Substitutes Provided and Risk Charge Objective of this reporting standard This reporting standard is made under section 13 of the Financial

### Non-Bank Deposit Taker (NBDT) Capital Policy Paper

Non-Bank Deposit Taker (NBDT) Capital Policy Paper Subject: The risk weighting structure of the NBDT capital adequacy regime Author: Ian Harrison Date: 3 November 2009 Introduction 1. This paper sets out,

### Technical Paper. Review of capital standards for general insurers and life insurers Insurance concentration risk capital charge for general insurers

Technical Paper Review of capital standards for general insurers and life insurers Insurance concentration risk capital charge for general insurers 30 September 2010 www.apra.gov.au Australian Prudential

### SMSF Property Loans Online Product Training

SMSF Property Loans Online Product Training Contents 01 SMSFs and borrowing 02 Responsibilities and licensing 03 Product overview and features 04 Fees 05 Credit policy 06 Case study 07 Next steps 01 SMSFS

### Macquarie Prime Loan Facility

Macquarie Prime Loan Facility Product Disclosure Statement Contents Section 1 - About Macquarie Bank Limited and the Macquarie Prime Loan Facility 1 Section 2 - Benefits of a Macquarie Prime Loan Facility

### Capital Adequacy: Measurement of Capital

Prudential Standard APS 111 Capital Adequacy: Measurement of Capital Objective and key requirements of this Prudential Standard For capital adequacy purposes, authorised deposit-taking institutions must

### Objective and key requirements of this Prudential Standard

Prudential Standard LPS 110 Capital Adequacy Objective and key requirements of this Prudential Standard This Prudential Standard requires a life company to maintain adequate capital against the risks associated

### A simply better home loan for you

A simply better home loan for you A simply better home loan Buying a home is the great Aussie dream. Which is why at PLAN Lending we re committed to helping turn your dreams into reality, whether you

### Credit risk. Risk weighting. Carrying value. Public disclosure of Prudential Information. requirements. Those. Pillar. 2 - Enhanced adequacy.

Public disclosure of Prudential Information as at 31st March 211 This public disclosure is prepared for for the quarter ended the 31st March 211. It complies with Prudential Standard APS 33 Capital Adequacy:

### Basel III Pillar 3 CAPITAL ADEQUACY AND RISK DISCLOSURES AS AT 30 SEPTEMBER 2014

Basel III Pillar 3 CAPITAL ADEQUACY AND RISK DISCLOSURES AS AT 30 SEPTEMBER 2014 COMMONWEALTH BANK OF AUSTRALIA ACN 123 123 124 5 NOVEMBER 2014 1 Scope of Application The Commonwealth Bank of Australia

### 1. This Prudential Standard is made under paragraph 230A(1)(a) of the Life Insurance Act 1995 (the Act).

Prudential Standard LPS 110 Capital Adequacy Objective and key requirements of this Prudential Standard This Prudential Standard requires a life company to maintain adequate capital against the risks associated

### Outstanding Claims Liability Insurance Risk Charge Australia by region (Level 2

Reporting Form GRF 210.0B_G Outstanding Claims Liability Insurance Risk Charge Australia by region (Level 2 Insurance Group) Instruction Guide Introduction This instruction guide is designed to assist

### Statistics. Quarterly Superannuation Performance (interim edition) June 2014 (issued 21 August 2014)

Statistics Quarterly Superannuation Performance (interim edition) June 2014 (issued 21 August 2014) www.apra.gov.au Australian Prudential Regulation Authority Copyright Australian Prudential Regulation

### 1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Reporting Standard SRS 250.0 Acquired Insurance Objective of this Reporting Standard This Reporting Standard sets out the requirements for the provision of information to APRA relating to acquired insurance

### 1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Reporting Standard SRS 161.0 Self-Insurance Objective of this Reporting Standard This Reporting Standard sets out the requirements for the provision of information to APRA relating to self-insurance arrangements

### Basic Home Loan Product Specification

Basic Home Loan Product Specification For further information www.partners.stgeorge.com.au Mortgage Central 1300 137 532 This product specification is the property of St.George Bank. It is for the use

### CONSULTATION PAPER P016-2006 October 2006. Proposed Regulatory Framework on Mortgage Insurance Business

CONSULTATION PAPER P016-2006 October 2006 Proposed Regulatory Framework on Mortgage Insurance Business PREFACE 1 Mortgage insurance protects residential mortgage lenders against losses on mortgage loans

### Relocation With End Loan Product Specification

Relocation With End Loan Product Specification For further information www.partners.stgeorge.com.au Mortgage Central 1300 137 532 This product specification is the property of St.George Bank. It is for

### (refer AGN 112.1 Standardised Approach to Credit Risk: Riskweighted

Guidance Note AGN 112.2 Standardised Approach to Credit Risk: Risk-weighted Off-balance Sheet Credit Exposures 1. This Guidance Note and its Attachments set out the procedures and requirements for calculating

### LRF_310_1 and LRF_310_2 Income Statement

LRF_310_1 and LRF_310_2 Income Statement These instructions must be read in conjunction with the general instruction guide. Explanatory notes Application of reporting items While these instructions apply

### Please note that this is not a consultation document. December 2013. Ref #5545583

Summary of submissions and final policy decisions on the Consultation Paper: Review of bank capital adequacy requirements for housing loans (stage two) Please note that this is not a consultation document.

### Regulatory impact assessment on capital requirements for reverse mortgage loans

Regulatory impact assessment on capital requirements for reverse mortgage loans 28 October 2015 2 Agency disclosure statement 1. This Regulatory Impact Statement (RIS) has been prepared by the Reserve

### The Role of Mortgage Insurance under the New Global Regulatory Frameworks

The Role of Mortgage Insurance under the New Global Regulatory Frameworks By Anna Whittingham Regulatory Analyst, Genworth Financial Mortgage Insurance Europe Summary and Overview The introduction of fundamental

### COMMONWEALTH BANK OF AUSTRALIA Retail Entitlement Offer Booklet

COMMONWEALTH BANK OF AUSTRALIA NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES SYDNEY, 17 AUGUST 2015: Attached is a copy of the retail entitlement offer booklet in connection with the retail component

### Understanding gearing Version 5.0

Understanding gearing Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to gearing. This document has

### 1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Reporting Standard SRS 702.1 Investment Performance Objective of this Reporting Standard This Reporting Standard sets out the requirements for the provision of information to APRA relating to the investment

### Review of interest-only home loans

REPORT 445 Review of interest-only home loans August 2015 About this report This report is for holders of Australian credit licences (credit licensees) and highlights the importance of responsible lending

### Reporting Form ARF 396.0 Points of Presence Instruction Guide

Reporting Form ARF 396.0 Points of Presence Instruction Guide This form collects information about the type and locality of service delivery channels, or points of presence for Authorised Deposit-taking

### SUMMARY INTERIM REPORT 1Q2015

1st QUARTER REPORT 2015 1 SUMMARY INTERIM REPORT 1Q2015 The result for Norwegian Hull Club (NHC) in the first quarter of 2015 is minus USD 9.3 million. Technical result of insurance operations is minus

### RentersPLUS Move In Special

\$500.00 \$658.00 \$125.00 Security Deposit Insurance is for \$500.00 of coverage and is a non refundable premium. Move In Savings of \$375.00 by Choosing Security Deposit Insurance. \$288.00 \$750.00 \$908.00

### FAMILY PLEDGE HOME LOAN. Product Specification. Effective as at 12 June 2015

FAMILY PLEDGE HOME LOAN Product Specification Effective as at 12 June 2015 This product specification is the property of Bank of Melbourne. It is for the use of Bank of Melbourne employees, contractors

### Life Insurance (Prudential Rules) Determination No. 4 of 2005: Prudential Rules No. 26 Applying To Life Companies Other Than Friendly Societies

Life Insurance (Prudential Rules) Determination No. 4 of 2005: Prudential Rules No. 26 Applying To Life Companies Other Than Friendly Societies Explanatory Statement This statement is issued by the authority

### Division 9 Specific requirements for certain portfolios of exposures

L. S. NO. 2 TO GAZETTE NO. 43/2006 L.N. 228 of 2006 B3157 Division 9 Specific requirements for certain portfolios of exposures 197. Purchased receivables An authorized institution shall classify its purchased

### Life Insurance (Prudential Rules) Determination No. 7 of 2005

Life Insurance (Prudential Rules) Determination No. 7 of 2005 Prudential Rules No. 50 - Revised Starting Amounts Life Insurance Act 1995 I, John Francis Laker, Chair of APRA, under subsection 252(1) of

### Life Insurance (Prudential Rules) Determination No. 6 of 2005

Life Insurance (Prudential Rules) Determination No. 6 of 2005 Prudential Rules No. 49 - Contract Classification for the purpose of regulatory reporting to APRA Life Insurance Act 1995 I, John Francis Laker,

### Public Bank Account Investment Book Credit Policy

Public Bank Account Investment Book Credit Policy March 2014 1 Overview The Western Australian Treasury Corporation (WATC) manages the Public Bank Account (PBA) Investment Book, including the separate

### QBE INSURANCE GROUP Annual General Meeting 2009. All amounts in Australian dollars unless otherwise stated.

Annual General Meeting 2009 All amounts in Australian dollars unless otherwise stated. John Cloney Chairman 2 Results of proxy voting A total of 4,874 valid proxy forms were received. The respective votes

### Housing review stage two: asset class treatment of residential property investment loans in BS2A and BS2B;

Consultation paper Housing review stage two: asset class treatment of residential property investment loans in BS2A and BS2B; capital requirements for reverse mortgage loans in BS2A and BS2B; removal of

### TD Bank Financial Group Q4/08 Guide to Basel II

TD Bank Financial Group Q4/08 Guide to Basel II 1. OVERVIEW General Information on Basel can be found on the Canadian Bankers Association website at www.cba.ca. Choose Issues, Standards, Rules and Guidelines

### October 4, 2002 XXX. Dear XX. RE: APRA Yearly Statutory Accounts and Audit Requirements

October 4, 2002 Policy, Research and Consulting Telephone: 61 2 9210 3408 Facsimile: 61 2 9210 3022 E-Mail: lyndon.kingston@apra.gov.au XXX Dear XX RE: APRA Yearly Statutory Accounts and Audit Requirements

### DRAFT September 2012. These instructions assist completion of Reporting Form SRF 161.0 Self-Insurance (SRF 161.0).

Reporting Form SRF 161.0 Self-Insurance Instructions DRAFT September 2012 These instructions assist completion of Reporting Form SRF 161.0 Self-Insurance (SRF 161.0). SRF 161.0 collects information on

### REPORT ON BROKER ORIGINATED LENDING

REPORT ON BROKER ORIGINATED LENDING RESULTS OF A SURVEY OF AUTHORISED DEPOSIT-TAKING INSTITIONS, UNDERTAKEN BY THE AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY JANUARY 2003 Anoulack Chanthivong Anthony D.

### ANZ Margin Lending Integrated with E TRADE

ANZ Margin Lending Integrated with E TRADE The ANZ Margin Loan - Integrated with E TRADE What is margin lending? Benefits of gearing The ANZ Margin Loan is an integrated facility that allows you to trade

### Housing review stage two: asset class treatment of residential property investment loans in BS2A and BS2B;

Consultation paper Housing review stage two: asset class treatment of residential property investment loans in BS2A and BS2B; capital requirements for reverse mortgage loans in BS2A and BS2B; removal of

### Basel Committee on Banking Supervision. Frequently Asked Questions on Basel III s January 2013 Liquidity Coverage Ratio framework

Basel Committee on Banking Supervision Frequently Asked Questions on Basel III s January 2013 Liquidity Coverage Ratio framework April 2014 This publication is available on the BIS website (www.bis.org).

### FINANCIAL SERVICES BOARD INSURANCE DIVISION

Page1 FINANCIAL SERVICES BOARD INSURANCE DIVISION THE QUARTERLY REPORT ON THE RESULTS OF THE LONG-TERM INSURANCE INDUSTRY FOR THE PERIOD ENDED 31 Page2 TABLE OF CONTENT SPECIAL REPORT ON THE RESULTS OF

### Inquiry into matters relating to Credit Card interest rates

Committee Secretary 15 August 2015 Senate Standing Committees on Economics PO Box 6100 Parliament House Canberra ACT 2600 Inquiry into matters relating to Credit Card interest rates The Westpac Group thanks

### Internal Ratings-based Approach to Credit Risk: Purchased Receivables

Guidance Note AGN 113.4 Internal Ratings-based Approach to Credit Risk: Purchased Receivables 1. This Guidance Note sets out the method of calculating the unexpected loss (UL) regulatory capital requirement

### Framework for Restrictions on High-LVR Residential Mortgage Lending

Framework for Restrictions on High-LVR Residential Mortgage Lending Prudential Supervision Department Document Issued: 2 Part 1 Introduction 1. Objectives for residential mortgage lending restrictions

### Macquarie Contracts for Difference

Macquarie Contracts for Difference Product Disclosure Statement 15 JUNE 2015 Macquarie Bank Limited. ABN 46 008 583 542. Australian Financial Services Licence No. 237502. 1 This PDS This product disclosure

### Sandhurst Select Mortgage Fund

Sandhurst Select Mortgage Fund Product Disclosure Statement Date 17 August 2015 The responsible entity and issuer of the Fund is Sandhurst Trustees Limited, ABN 16 004 030 737 AFSL 237906, a subsidiary

### Bank of Queensland Limited

APRA 30 April 2012 The Basel II Capital Accord principles took effect in Australia on 1 January 2008. The framework for the application of Basel II in Australia is comprised of three pillars: Pillar 1:

### SECTION III. Definitions have been included in these instructions to assist insurers with the preparation of their filings.

SECTION III Definitions have been included in these instructions to assist insurers with the preparation of their filings. This section is not a complete set of insurance and insurance accounting definitions

### Purchase and Supply of Assets (including Securities Issued by Special Purpose Vehicles)

Guidance Note AGN 120.3 Purchase and Supply of Assets (including Securities Issued by Special Purpose Vehicles) 1. This Guidance Note details the clean sale requirements when an authorised deposit-taking

### Appendix B. Australian Property Institute Valuers Limited (APIV) Insurance Standards (for the APIV Professional Standards Scheme)

Standard 1 - Application of the APIV Insurance Standards 1. All members of the APIV must maintain a Professional Indemnity Insurance Policy which at a minimum is compliant with these Insurance Standards

### GUIDELINES MATTERS TO BE INCLUDED IN A FUNDING PLAN

GUIDELINES MATTERS TO BE INCLUDED IN A FUNDING PLAN Background 1. A body corporate, being either: (a) a Medical Defence Organisation (MDO) within the meaning of the Medical Indemnity (Prudential Supervision

### JOINT RBA-APRA SUBMISSION TO THE INQUIRY INTO HOME LENDING PRACTICES AND PROCESSES

JOINT RBA-APRA SUBMISSION TO THE INQUIRY INTO HOME LENDING PRACTICES AND PROCESSES Introduction This submission brings together the factual material available to the Reserve Bank of Australia and APRA

### Actuarial Report. On the Proposed Transfer of the Life Insurance Business from. Asteron Life Limited. Suncorp Life & Superannuation Limited

Actuarial Report On the Proposed Transfer of the Life Insurance Business from Asteron Life Limited to Suncorp Life & Superannuation Limited Actuarial Report Page 1 of 47 1. Executive Summary 1.1 Background

### Measuring Credit 1. Introduction. What Is Credit?

Measuring Credit 1 Introduction Central banks put significant emphasis on credit aggregates for understanding financial conditions in the economy. Measuring credit outstanding, however, is not straightforward,

### Measurement of Banks Exposure to Interest Rate Risk and Principles for the Management of Interest Rate Risk respectively.

INTEREST RATE RISK IN THE BANKING BOOK Over the past decade the Basel Committee on Banking Supervision (the Basel Committee) has released a number of consultative documents discussing the management and

### Section C. Maximum Mortgage Amounts on Streamline Refinances Overview

Section C. Maximum Mortgage Amounts on Overview In This Section This section contains the topics listed in the table below. Topic Topic Name See Page 1 General Information on 3-C-2 2 Without an Appraisal

### Solvency Standard for Non-life Insurance Business AMI Insurance Limited

Solvency Standard for Non-life Insurance Business AMI Insurance Limited Insurance Policy Prudential Supervision Department September 2011 2 1. Introduction 1.1. Authority 1. This solvency standard is made