4 MARCH NEW ZEALAND GAZETTE 681

equity instrument expressed in New Zealand dollars using the relevant spot exchange rate; and

(b) in the case of other equity instruments, the carrying amount of the equity instrument expressed in New Zealand dollars using the relevant spot exchange rate.

(4) Notwithstanding clause 12 (3) of this Schedule, the value of:

(a) a net equity futures position is the marked-to-market value of the notional underlying equity position; and

(b) a net equity option position is the delta equivalent value.

13. Aggregate Equity Exposure—The Banking Group’s Aggregate Equity Exposure is the sum of the absolute values of the Equity Exposures in each currency.

14. Miscellaneous Amendments to Order in Council—The principal Order shall be amended as follows:

(a) clause 1 (4) of the principal Order is hereby amended by inserting after the words “which occurs after 1 January 1996” the following words:

“or in respect of a Registered Bank which becomes a Registered Bank after 1 January 1996 shall be in respect of such date (whether before or after the date of registration) as the Reserve Bank shall determine.”;

(b) clause 4 of the principal Order is hereby amended by the addition of the following clause 1(5):

“(5) Where the Reserve Bank, pursuant to clause 1(4) of this Order, determines the date in respect of which a Disclosure Statement shall be published, a reference in this Order to a Balance Date shall be read as if it were a reference to that date.”;

(c) clause 3 (1) of the principal Order is hereby deleted and replaced with the following:

“(1) Subject to the Act, every Registered Bank shall Publish not later than three months after each Balance Date (or in the case of the first Disclosure Statement required by this Order for a Registered Bank which becomes a Registered Bank after 1 January 1996, within such period as the Reserve Bank shall specify) a Disclosure Statement which shall:

(a) contain the information that is prescribed in Part II to Part V of this Order; and

(b) comply with the Act.”;

(d) clause 5 (6) (h) of the principal Order is hereby amended by inserting after the words “the number of individual Counterparties” the words “(not being members of a Group of Closely Related Counterparties)”, and by replacing the succeeding word “or” with the word “and”;

(e) clause 5 (6) of the principal Order is hereby amended by inserting the following paragraph:

“(ia) Where the Registered Bank is required by any statute to hold in New Zealand an excess of assets over deposit liabilities, the Key Information Summary shall state the name of the statute, and contain a description of the requirement and a statement as to whether, since the commencement of the Accounting Period, the Registered Bank has at all times complied with that requirement.”;

(f) clause 6 of the principal Order is hereby amended by inserting after subclause (4) the following subclause:

“(5) Where the Registered Bank is required by any statute to hold in New Zealand an excess of assets over deposit liabilities, the General Disclosure Statement shall:

(g) clause 7 of the Fourth Schedule to the principal Order is hereby deleted and replaced with the following:

“7. The General Disclosure Statement shall disclose the number of individual Bank Counterparties (not being members of a Group of Closely Related Counterparties) and Groups of Closely Related Counterparties of which a Bank is the parent to whom the Banking Group has a Credit Exposure which equals or exceeds 10% of the Overseas Banking Group’s Equity over the Interim Accounting Period or Accounting Period in successive ranges of 10% of Equity, commencing at 10% of Equity.”; and

(h) clause 9 of the Fourth Schedule to the principal Order is hereby deleted and replaced with the following:

“9. The General Disclosure Statement shall disclose the number of individual non Bank Counterparties (not being members of a Group of Closely Related Counterparties) and Groups of Closely Related Counterparties of which a Bank is not the parent to whom the Banking Group has a Credit Exposure which equals or exceeds 10% of the Overseas Banking Group’s Equity over the Interim Accounting Period or Accounting Period in successive ranges of 10% of Equity, commencing at 10% of Equity.”.

DIANE WILDERSPIN, Acting for Clerk of the Executive Council.

Explanatory Note

This note is not part of the Order in Council, but is intended to indicate its general effect.

This Order in Council is one of four Orders in Council promulgated pursuant to section 81 (1) of the Reserve Bank of New Zealand Act 1989. The Orders in Council amend the public disclosure requirements for registered banks contained in the principal Orders, which took effect on 1 January 1996. The principal Orders are amended by:

(a) the inclusion of schedules specifying market risk disclosure requirements, and

(b) a number of miscellaneous amendments to the general disclosure requirements.

This Order in Council comes into force on 1 April 1996. The market risk disclosures apply in respect of Disclosure Statements relating to balance dates which occur after 1 April 1996. Where a registered bank is unable to disclose peak exposures for that part of an accounting period which precedes the date on which the Order comes into force, the registered bank may disclose peak information in respect of the period commencing with the date on which this Order comes into force.

This Order in Council applies to a registered bank which is incorporated in a country other than New Zealand, and which operates in New Zealand as a branch of the overseas bank, in respect of each such bank’s end of financial year and half year.

Market Risk Disclosure Requirements

A registered bank will be required to include market risk information in its General Disclosure Statement.

The market risk information to be disclosed will relate to the banking group’s interest rate exposure, foreign currency exposure and equity exposure. A bank will be required to disclose its exposure to each of these categories of market