APRA published the outcomes from their consultation relating to publishing additional ADI liquidity data each quarter. They say that on the basis that submissions were broadly supportive of the proposal to publish additional liquidity statistics, APRA will incorporate the expanded liquidity statistics for the September 2016 edition of QADIP, to be released 29 November 2016.
These expanded statistics will promote understanding of the ADI industry and provide users of APRA’s statistics with additional information to make well-informed decisions.
To provide users with additional information, and to ensure that the new statistics are not misused or misinterpreted, APRA will also release an explanatory note that explains how the liquidity statistics should be interpreted and used.
The September 2016 edition of QADIP as well as the explanatory information will be available from 29 November 2016
APRA says it seeks to publish as much of the data collected as is considered useful, subject to APRA’s confidentiality obligations with respect to individual institutions’ data. APRA intends to consult ADIs and other interested parties in 2017 about the segments in its ADI statistics to ensure that the statistics APRA produces meet user needs and are not likely to be misinterpreted or misused.
While APRA currently publishes financial performance and financial position statistics for mutual ADIs, prudential statistics are not published for mutual ADIs. APRA does not intent to publish liquidity statistics for mutual ADIs at this stage.
Institution-level liquidity statistics are generally protected by the secrecy provisions in section 56 of the Australian Prudential Regulation Authority Act 1998. APRA says it will consider the suggestion of publishing institution-level liquidity statistics and welcomes feedback from ADIs.
We think individual institution level data should be published, because better transparency should be encouraged, and whilst the “smoke-screen” of commercial confidentially will be cited, we think public interest should carry more weight. Relative to a number of other countries, we are more reticent in Australia to disclose. There is a strong case to change this.
