Public Disclosure of Prudential Information (APS 330)
Beyond Bank is committed to transparency. We provide our customers with clear and straightforward information on our group structure, capital structure, risk-based approach to capital management and remuneration arrangements.
- Beyond Bank Group Structure
The Beyond Bank Group provides financial services to its customers. The entities comprising, and the construct of, the Group can be viewed in the Beyond Bank Group Structure.
These entities are fully consolidated within the Group and there are no restrictions on or impediments to the transferring of funds or capital between Group companies.
The entities within the Group are fully capitalised in accordance with APRA requirements and Beyond Bank Board Policy.
- Capital Structure – Beyond Bank
Capital instruments: Group capital is substantially internally generated and comprises retained earnings and reserves. There is no external capital support.
Beyond Bank's capital comprises:
- Current Public Disclosures of Prudential Information
- Previous Public Disclosures of Prudential Information
- Capital Adequacy
Beyond Bank takes a risk-based approach to the measurement of capital adequacy. Beyond Bank assesses risks for capital adequacy purposes with regard to the two pillars APRA has established in the Basel II Framework, as set out below:
- Pillar 1
- Credit risk: Credit risk arises from lending and treasury activities.
- Market risk: Market risk arises from mismatches in interest rate terms.
- Operational risk: Operational risk is the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events.
- Pillar 2
Incorporates other risks that are applicable to the business, which are not covered in Pillar 1.
These risks are quantified and a level of capital is then assigned to that risk. The quantification of each risk is reviewed at least annually or with any material change in the nature of Beyond Bank's business activities, permitting the level of capital assigned to each risk to also be adjusted. This gives the directors comfort that the level of capital held is appropriate for the current assessment of Beyond Bank's risks.
The board has a target regulatory capital adequacy range of above 13%.
- Risk Exposure and Assessment
As Beyond Bank is involved in the business of lending, credit risk is a risk which gains a high degree of focus.
Credit risk is associated with the quality of lending, other monetary assets and derivatives and in particular the assessment of the credit worthiness of counterparties. Accordingly, the level of total arrears is used as an indicator of the inherent credit risk in the loan book. In addition to arrears, there is an element of credit risk for loans that are not in arrears. This component is also considered when quantifying credit risk.
Beyond Bank raises doubtful debt provisions against expected credit risk losses (i.e. where a "loss event" has occurred). Capital is held for unexpected credit risk losses. The additional capital held for unexpected secured credit risk losses is determined using hypothetical scenario modelling allowing for abnormally high (10% - shock) levels of loan defaults, a large (30%) negative movement in security valuations and no recovery from mortgage insurance. For unsecured loans, modelling is undertaken that allows for a significant (200%) deterioration in delinquency, an abnormally high (triple-shock) level of defaults and a large (30%) increase in losses on defaulting loans.
Beyond Bank is committed to the principle of pay equity and sets rates of pay for positions according to job classification. Employee remuneration is substantially of a fixed nature; bonus, incentive and performance-based payment schemes do not generally apply as they are not conducive to Beyond Bank’s team-based culture and relationship-focussed business model.
Beyond Bank engages the services of an external remuneration consultant to provide remuneration advice in relation to job evaluation, annual salary market movements and competitive salary banding.
Read Beyond Bank's Public Disclosures of Prudential Information (Remuneration) statement
- Barton Series
The Barton Securitisation Program was established by Beyond Bank in April 2011 for the purpose of securitising Australian Dollar, Prime, Full Documentation Residential Mortgages to raise wholesale funding from institutional investors in the Australian capital markets. Read about the Barton Series in full detail.
- Environmental Sustainability
We aim to reduce our environmental impacts by minimising our use of natural resources, energy and water and thereby reducing waste production and greenhouse gas emissions.
We believe it’s important to protect the environment for future generations.
We have set up an Environmental Management System Committee that actively works on measuring and reducing the carbon footprint of all our locations, and works on a long-term paperless office project.
Our community and volunteering efforts also focus on bush rejuvenation, tree planting and assisting our communities in reducing their carbon footprint.
Our commitment to the environment extends to our range of enviro products including Enviro Loans and eStatements, enabling our members to support sustainable practices.
- Workplace Gender Equality Act 2012
In accordance with the requirements of the Workplace Gender Equality Act 2012 (Act) please be advised that The Group has lodged its annual public report with the Workplace Gender Equality Agency (WEGA) on 1 June 2017. The report can be accessed for viewing here.
For more information please refer to the WGEA’s guidelines on this process via their website www.wgea.gov.au.