NEW ZEALAND GAZETTE

No. 21

Reserve Bank

Reserve Bank of New Zealand Act 1989

Registered Bank Disclosure Statement (Full and Half-Year—New Zealand Incorporated Registered Banks) Amendment Order 1996

CATHERINE A. TIZARD, Governor-General

ORDER IN COUNCIL

At Wellington this 26th day of February 1996

Present:
Her EXCELLENCY THE GOVERNOR-GENERAL IN COUNCIL

Pursuant to section 81 (1) of the Reserve Bank of New Zealand Act 1989, Her Excellency the Governor-General, acting by and with the advice and consent of the Executive Council, and on the advice of the Minister of Finance given in accordance with a recommendation of the Reserve Bank of New Zealand, hereby makes the following Order.

Analysis

1. Title, Application and Commencement
2. Interpretation
3. Content of Financial and Supplementary Disclosures
4. Schedules
5. Miscellaneous Amendments to Order in Council

An Order to amend the Registered Bank Disclosure Statement (Full and Half-Year—New Zealand Incorporated Registered Banks) Order 1995.

1. Title, Application and Commencement—(1) This Order may be cited as the Registered Bank Disclosure Statement (Full and Half-Year—New Zealand Incorporated Registered Banks) Amendment Order 1996, and shall be read together with and deemed part of the Registered Bank Disclosure Statement (Full and Half-Year—New Zealand Incorporated Registered Banks) Order 1995 (hereinafter referred to as the principal Order).

(2) (a) This Order shall come into force on the 1st day of April 1996.

(b) Clauses 2 to 4 of the Order shall apply only in respect of Disclosure Statements relating to Balance Dates which occur after 1 April 1996.

(c) Where a Registered Bank is unable to disclose peak end-of-day information for that part of an Accounting Period which precedes the date on which this Order comes into force, the Registered Bank may disclose peak end-of-day information in respect of the period commencing with the date on which this Order comes into force.

2. Interpretation—Clause 2 (4) of the principal Order is hereby amended by inserting, in the appropriate alphabetical order, the following definitions:

'Aggregate Equity Exposure' means the aggregate amount of Equity Exposure to all currencies.

'Aggregate Foreign Currency Exposure' means the aggregate amount of Foreign Currency Exposure to all currencies other than New Zealand dollars.

'Aggregate Interest Rate Exposure' means the aggregate amount of Interest Rate Exposure to all currencies.

'Aggregate Market Risk Exposure' means exposure to all, or any, of Aggregate Equity Exposure, Aggregate Foreign Currency Exposure and Aggregate Interest Rate Exposure.

'Equity Exposure' means the amount of the change in the economic value of the Financial Assets and Financial Liabilities of the Banking Group in a single currency, which would occur as a result of a change in the price of equity instruments in that currency.

'Foreign Currency Exposure' means the amount of the change in the economic value of the Financial Assets and Financial Liabilities of the Banking Group in a single foreign currency which would occur as a result of a change in the rate of exchange applicable to that foreign currency.

'Interest Rate Exposure' means the amount of the change in the economic value of the Financial Assets (excluding equity instruments) and Financial Liabilities (excluding equity instruments) of the Banking Group in a single currency which would occur as a result of a change in interest rates in that currency.

'Interest Rate Repricing Date', as that term applies to a Financial Instrument or to a proportion of a Financial Instrument, means the earlier of the date on which, in accordance with the terms of the Financial Instrument:

(a) the interest rate reset date next occurs (being the date on which the rate of interest payable in respect of the Financial Instrument can or will alter); or

(b) the principal sum is due and payable or, where no principal sum is due and payable, the maturity date occurs.

'Market Risk Exposure' means exposure to any, or all, of Equity Exposure, Foreign Currency Exposure and Interest Rate Exposure.

'Rate Insensitive Retail Assets' means that amount of the Financial Assets held by the Banking Group which the Registered Bank reasonably believes is unlikely to be diminished or increased as a result of a Material change in market interest rates if the interest rate applicable to that Financial Asset (which may be zero) does not change or does not change Materially.

'Rate Insensitive Retail Liabilities' means that amount of the Financial Liabilities held by the Banking Group which the Registered Bank reasonably believes is unlikely to be diminished or increased as a result of a Material change in market interest rates if the interest rate applicable to that Financial Liability (which may be zero) does not change or does not change Materially.

'Rate Insensitive Retail Product' means either or both of a Rate Insensitive Retail Asset or a Rate Insensitive Retail Liability.

3. Content of Financial and Supplementary Disclosures—Clause 12 (3) of the principal Order is hereby amended by omitting the words “Schedule 6”, and substituting the words “Schedules 6 to 8”.

4. Schedules—The principal Order is hereby amended by inserting, after the ‘Sixth Schedule Risk Management Policies’ the following Schedules:

Seventh Schedule

Exposures to Market Risk

1. (1) A Registered Bank shall disclose the amount of Aggregate Market Risk Exposures of the Banking Group in respect of each category of Aggregate Market Risk Exposure on the basis of:

(a) Aggregate Market Risk Exposures derived in accordance with Schedule 8 of this Order; or

(b) the Banking Group’s internal operating limits applicable to the relevant category of Aggregate Market Risk Exposure, but only if the Aggregate Market Risk Exposure in that category has not