456 NEW ZEALAND GAZETTE, No. 21 23 FEBRUARY 2007

(i) opening balance;

(ii) charge (credit) to the statement of financial performance for increase/decrease in the General Provision;

(iii) other movements, and the nature thereof;

(iv) closing balance;

with movements reconciled to the charges allocated to the statement of financial performance.

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 First Quarter Accounting Period or the Third Quarter Accounting Period.

The General Short Form 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 be calculated net of Specific Provisions, and shall exclude Credit Exposures to Connected Persons and any OECD Government.

3. The General Short Form 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 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 Banking Group’s Equity;

as at the Off-Quarter Balance Date, and in respect of peak end-of-day aggregate Credit Exposures for the First Quarter Accounting Period or the most recent quarter of the Third Quarter Accounting Period, in successive ranges of 10% of Equity, commencing at 10% of Equity.

4. 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 First Quarter Accounting Period or the most recent quarter of the Third Quarter 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 Banking Group’s Equity as at the end of the quarter; or

(b) the 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 Short Form Disclosure Statement which of the methods it has used to derive peak ratio information.

5. The General Short Form Disclosure Statement shall disclose the following information, as at the Off-Quarter Balance Date, separately for counterparties referred to in subclause 3(a) of this Schedule, and separately for counterparties referred to in subclause 3(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 5(a) or 5(b) of this Schedule.

6. For the purposes of clause 5 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 (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 3(a) or 3(b) relates, the percentage of aggregate Credit Exposure shall be derived by:

(i) taking the aggregate Credit Exposure as at the Off-Quarter 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;

(ii) taking the aggregate Credit Exposure as at the Off-Quarter Balance Date to each individual Counterparty (not being members of a Group of Closely Related Counterparties) and to each Group of Closely Related Counterparties that meet the criteria specified in subclauses 5(a), 5(b), and 5(c) respectively, and adding all the amounts in respect of each subclause;