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i information on the banking group’s funds management and securitisation activities, to the extent it has any;

j information on the directorate and auditors of the bank.

A bank is required 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.

Each bank must publish a Supplemental Disclosure Statement, unless the information it would include is contained in the General Disclosure Statement. The Supplemental Disclosure Statement must be made available free of charge, immediately if the request is made at a bank’s head office, or within five working days if the request is made at a bank branch or at any customer-accessible bank premises other than the head office. This Order in Council requires the following information to be contained in a Supplemental Disclosure Statement:

a the conditions of registration imposed by the Reserve Bank on the registered bank pursuant to section 74 of the Reserve Bank of New Zealand Act;

b the contract of guarantee and financial statements of any guarantor, where the material obligations of the registered bank are guaranteed;

c where the registered bank has entered into any material cross guaranteeing arrangements, a copy of the full guarantee contract if there is a contract which sets out, or is representative of, the rights and obligations of all the cross guarantors.

A bank has three months after its balance date or interim balance date in which to publish the disclosure statements required by this Order in Council.

The disclosure statement in respect of the end of a financial year is subject to full external audit. The disclosure statement prepared as at the half year is subject to a limited review by an external auditor, although a registered bank may elect to obtain a full external audit. With the exception of the market risk information, the audit opinions at both of these periods concern whether the information disclosed gives a true and fair view of the matters to which it relates. The audit opinion on the market risk information relates to whether the information disclosed complies with the provisions of this Order for determining and disclosing that information.

The disclosure statements required by this Order in Council must be signed by all the directors of the bank. A director may authorise in writing another person to sign on his or her behalf.

In addition, the Order in Council makes provision for the Reserve Bank to require a newly registered bank to publish an initial disclosure statement, so that there is no gap between the time the bank commences business and the time a disclosure statement is made available to its customers.

The Reserve Bank of New Zealand Act provides for criminal and civil penalties where a bank’s disclosure statement is found to be false or misleading.

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

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Registered Bank Disclosure Statement

(Off-Quarter—New Zealand Incorporated Registered Banks) Order 1998

MICHAEL HARDIE BOYS, Governor-General

ORDER IN COUNCIL

At Wellington this 24th day of August 1998

Present:

His Excellency the Governor-General in Council

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

Analysis

1. Title, Application and Commencement

Part I—Preliminary

2. Interpretation

3. Form, Frequency and Distribution of Short Form Disclosure Statement

4. General Provisions Relating to Content of Short Form Disclosure Statement

Part II—Key Information Summary

5. Content of Key Information Summary

Part III—General Disclosures to be Contained in General Short Form Disclosure Statement

6. General Matters

7. Guarantee Arrangements

8. Conditions of Registration

9. Credit Ratings

Part IV—Financial and Supplementary Disclosures to be Contained in General Short Form Disclosure Statement

10. Content of Financial and Supplementary Disclosures

11. Auditor’s Report

12. The Directors’ Statement

Part V—Supplemental Disclosure Statement

13. General Matters

14. Guarantors

15. Conditions of Registration

Schedules

1. Short Form Financial Statements

2. Capital Adequacy of the Banking Group

3. Asset Quality

4. Concentration of Credit Exposures to Individual Counterparties

5. Credit Exposures to Connected Persons

6. Securitisation, Funds Management, and Other Fiduciary Activities

7. Risk Management Policies

8. Exposures to Market Risk

9. Measurement of Market Risk Exposure

Order

1. Title, Application and Commencement—(1) This Order may be cited as the Registered Bank Disclosure Statement (Off-Quarter—New Zealand Incorporated Registered Banks) Order 1998.

(2) This Order applies to every Registered Bank incorporated in New Zealand.

(3) This Order shall come into force on the 1st day of