11 FEBRUARY 2005 NEW ZEALAND GAZETTE, No. 35

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(b) whether the Overseas Bank or Overseas Banking Group meets those requirements imposed on it by the appropriate banking supervisory authority in its country of domicile as at the latest Balance Date.

Fourth Schedule

Concentration of Credit Exposures to Individual Counterparties

1. For the purposes of this Schedule, Credit Exposure information shall be disclosed either on the basis of:
   (a) actual Credit Exposures; or
   (b) internal limits, provided that those limits were not Materially exceeded during the Accounting Period or the Interim Accounting Period.

   The General Disclosure Statement shall state the method used.

2. For the purposes of this Schedule:
   (a) the information disclosed shall include comparative figures for the previous corresponding period;
   (b) Credit Exposure information shall:
   (i) relate only to exposures held in the financial records of the Banking Group;
   (ii) be calculated net of Specific Provisions; and
   (iii) exclude Credit Exposures to any OECD Government.

3. For the purposes of this Schedule, the Overseas Banking Group’s Equity shall be either that group’s Equity determined as at the Balance Date, or the most recently publicly disclosed amount. Where the Overseas Banking Group’s Equity is not determined as at the Balance Date, the General Disclosure Statement shall state the date to which the measure of Equity relates.

4. The General Disclosure Statement shall disclose:
   (a) 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 an aggregate Credit Exposure which equals or exceeds 10% of the Overseas Banking Group’s Equity; and
   (b) 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 an aggregate Credit Exposure which equals or exceeds 10% of the Overseas Banking Group’s Equity;
   as at the Balance Date, and in respect of peak end-of-day aggregate Credit Exposures for the most recent quarter of the Accounting Period or Interim Accounting Period, in successive ranges of 10% of Equity, commencing at 10% of Equity.

5. For the purposes of this Schedule, peak end-of-day aggregate Credit Exposure to each individual Counterparty or a Group of Closely Related Counterparties for the most recent quarter of the Interim Accounting Period or the Accounting Period shall be derived by determining the maximum end-of-day aggregate amount of Credit Exposure over the quarter, and then dividing that amount by:
   (a) the Overseas Banking Group’s Equity as at the end of the quarter; or
   (b) the Overseas Banking Group’s Equity at the date the maximum end-of-day aggregate amount of Credit Exposure occurred.

   A Registered Bank shall state in the General Disclosure Statement which of these methods it has used to derive peak ratio information.

6. The General Disclosure Statement shall disclose the following information, as at the Balance Date, separately for counterparties referred to in subclause 4 (a) of this Schedule, and separately for counterparties referred to in subclause 4 (b) of this Schedule:
   (a) the percentage and amount of aggregate Credit Exposure that is of an investment grade credit rating;
   (b) the percentage and amount of aggregate Credit Exposure that is below an investment grade credit rating; and
   (c) the percentage and amount of aggregate Credit Exposure that is not included in subclauses 6 (a) or (b) of this Schedule.

7. For the purposes of clause 6 of this Schedule:
   (a) a credit rating shall mean a credit rating which meets all of the following criteria:
   (i) in the case of a Group of Closely Related Counterparties, a credit rating which is applicable to the entity heading the Group of Closely Related Counterparties; or in the case of an individual Counterparty (not being a member of a Group of Closely Related Counterparties), a credit rating which is applicable to the individual Counterparty;
   (ii) a credit rating which is applicable to the relevant entity’s long term senior unsecured obligations payable in New Zealand, in New Zealand dollars; or which is applicable to the relevant entity’s long term senior unsecured foreign currency obligations;
   (iii) a credit rating which has been given by a rating agency which has been approved by the Reserve Bank of New Zealand under section 80 of the Act;
   (b) where an entity has two or more credit ratings that meet all the criteria in subclause 7 (a) of this clause and those credit ratings are not the same, then the lower credit rating shall apply;
   (c) an investment grade credit rating means a credit rating of BBB- or Baa3 or above, or its equivalent;
   (d) in respect of the counterparties to which either subclause 4 (a) or 4 (b) relates, the percentage of aggregate Credit Exposure shall be derived by:
   (i) taking the aggregate Credit Exposure as at the Balance Date to each individual Counterparty (not being members of a Group of Closely Related Counterparties) and to each Group of Closely Related Counterparties and adding all those amounts;