682

NEW ZEALAND GAZETTE

No. 21

risk, as an amount and as a percentage of the overseas banking group’s equity. These disclosures will be required in respect of exposures as at the end of the half year or full year and peak exposures over the accounting period to date. The Order requires a bank to calculate market risk exposures using either the method specified in the Order, or a different method, provided that such method does not give a result which would be materially lower than that arrived at by the method specified in the Order.

Miscellaneous Amendments

In addition, the Order in Council amends the principal Order:

– to make provision for the Reserve Bank to require a newly registered bank to publish an initial disclosure statement, so that there is no lag between the time the bank commences business and the time a disclosure statement is made available to its customers;

– by modifying the disclosure requirements relating to large exposures. This modification makes it clear that, when banks disclose the number of individual counterparties or counterparty groups to which they have a large exposure, they should not include in the total, those individual counterparties which are part of a counterparty group already included in the total. This will ensure that there is no double counting of exposures;

– where applicable, to require registered banks to publish information about any statutory requirement to hold net assets in New Zealand.

This Order in Council is administered in the Reserve Bank of New Zealand.

au1473

Registered Bank Disclosure Statement (Off-Quarter—Overseas 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. Schedules

4. Miscellaneous Amendments to Order in Council

An Order to amend the Registered Bank Disclosure Statement (Off-Quarter—Overseas Incorporated Registered Banks) Order 1995.

1. Title, Application and Commencement—(1) This Order may be cited as the Registered Bank Disclosure Statement (Off-Quarter—Overseas Incorporated Registered Banks) Amendment Order 1996, and shall be read together with and deemed part of the Registered Bank Disclosure Statement (Off-Quarter—Overseas 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 and 3 of the Order shall apply only in respect of Short Form Disclosure Statements relating to Off Quarter 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 equity instruments that are 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