New Zealand Gazette – 2007 – No. 21

Page 433

✨ Banking Regulations



23 FEBRUARY 2007

NEW ZEALAND GAZETTE, No. 21

433

(v) any maturity date; and
(vi) any options granted or to be granted pursuant to any arrangement, the consideration given or to be given, the
expiry date for the exercise and the total number of shares subject to such option;

(c) the total of cumulative preferred dividends in arrears; and

(d) a brief description of any other Material terms and conditions of issue of the securities including provisions of
related contracts or arrangements.

(3) For every other class of capital instrument included in Capital:

(a) whether the class constitutes upper or lower tier two capital;

(b) the priority or ranking in point of security, payment or claims of the class; and

(c) all other Material terms and conditions of issue of the class, including any related contracts or arrangements.

(4) The nature and amount of each reserve.

  1. The General Disclosure Statement shall contain the information specified below, in such format as the Registered Bank
    determines, derived in accordance with the Conditions of Registration relating to capital adequacy and the Reserve
    Bank document entitled Capital Adequacy Framework (BS2) as amended from time to time, in respect of the Registered Bank
    and the Banking Group, as at the Balance Date.

Risk Weighted Exposures

(1) Calculation of Balance Sheet Exposures

Amount Risk Weight Risk Weighted Exposure
Cash and short term claims on Government 0%
Long term claims on Government 10%
Claims on banks 20%
Claims on public sector entities 20%
Residential mortgages 50%
Other 100%
Total assets

(2) Calculation of Off-Balance Sheet Exposures

Amount Credit Conversion Factor Credit Equivalent Amount Average Counterparty Risk Weight Risk Weighted Exposure
Direct credit substitutes 100% 100%
Asset sales with recourse 100%
Commitments with certain drawdown 100%
Underwriting and sub-underwriting facilities 50%
Transaction related contingent items 50%
Short term, self liquidating trade related contingencies 20%
Other commitments to provide financial services which have an original maturity of 1 year or more 50%
Other commitments with an original maturity of less than 1 year or which can be unconditionally cancelled at any time 0%
Market related contracts(1) N/A
(a) Foreign exchange contracts
(b) Interest rate contracts
(c) Other
Total off-balance sheet exposures
Risk Weighted Exposures

(1) Specify whether the current exposure or original exposure method was used to calculate the credit equivalent amount on these contracts.

  1. The General Disclosure Statement shall contain the information specified below, derived in accordance with the
    Conditions of Registration relating to capital adequacy and the Reserve Bank document entitled Capital Adequacy Framework
    (BS2) as amended from time to time, in respect of the capital adequacy ratios of the Registered Bank and the Banking Group,
    as at the Balance Date:

(a) Tier One Capital expressed as a percentage of risk weighted exposures; and

(b) Capital expressed as a percentage of risk weighted exposures.

  1. Where the Registered Bank is a Subsidiary of an Ultimate Parent Bank:

(a) the General Disclosure Statement shall contain the most recent publicly available information specified below in
respect of the Ultimate Parent Bank and the Ultimate Parent Bank group:

(i) Tier One Capital expressed as a percentage of risk weighted exposures;

(ii) Capital expressed as a percentage of risk weighted exposures; and

(iii) the date to which the measures of Tier One Capital and Capital relate;



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2007, No 21


Gazette.govt.nz — PDF NZ Gazette 2007, No 21




✨ LLM interpretation of page content

💰 Capital Adequacy of the Registered Bank and the Banking Group (continued from previous page)

💰 Finance & Revenue
Capital Adequacy, Banking Regulations, Financial Disclosure, Tier One Capital, Tier Two Capital, Share Capital, Reserves, Subordinated Debt