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, other than in respect of the Barton Securitisation Program, Beyond Bank Australia Master Support Fund and Beyond Bank Australia Master DGR Fund, 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:
- Public Disclosures of Prudential Information December 2022
- Public Disclosures of Prudential Information September 2022
- Public Disclosures of Prudential Information June 2022
- Public Disclosures of Prudential Information March 2022
- Public Disclosures of Prudential Information December 2021
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 13.5%.
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 in accordance with Australian Accounting Standards based on an assessment of the expected probability of credit default, loss given default and exposure at default. Capital is also 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.
Remuneration
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.
Sustainability
We believe in a better way of doing business.
We are a responsible and ethical bank, committed to having a positive impact in the world. That’s why we were the first bank in Australia to become B Corp certified. As a B Corp we meet the highest standards of social and environmental performance, accountability and transparency by using business as a force for good.
Beyond Bank is recognised by the Australian Retail Banking Association as the best bank for corporate social responsibility and is rated best for the world in governance by scoring in the top 10% of all B Corps globally for our values, ethics and transparency.
Our commitment to people, profit and planet is underpinned by our cooperative endeavour that aims to return real value back to our customers and their communities beyond today.