23 FEBRUARY 2007

NEW ZEALAND GAZETTE, No. 21

457

(iii) dividing each sum derived in accordance with subclause 6(d)(ii) of this clause by the sum derived in subclause 6(d)(i) of this clause, and representing this information as a percentage.

Fifth Schedule

Credit Exposures to Connected Persons

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. Information disclosed in accordance with this Schedule:

(a) shall be derived in accordance with the Conditions of Registration relating to Credit Exposures to Connected Persons; and

(b) shall include comparative figures for the previous corresponding period.

3. The General Short Form Disclosure Statement shall disclose the aggregate Credit Exposure (of a non-capital nature and net of Specific Provisions) of the Banking Group to:

(a) Connected Persons; and

(b) Non-Bank Connected Persons;

expressed both as an amount and as a percentage of Tier One Capital:

(i) as at the Off-Quarter Balance Date; and

(ii) in respect of peak Credit Exposures for the First Quarter Accounting Period or the most recent quarter of the Third Quarter Accounting Period.

The General Short Form Disclosure Statement shall contain a statement that the information on Credit Exposure to Connected Persons has been derived net of Specific Provisions, and excluding advances to Connected Persons of a capital nature.

4. For the purposes of this Schedule, peak end-of-day aggregate Credit Exposure to Connected Persons 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 Tier One Capital as at the end of the quarter; or

(b) the Banking Group’s Tier One Capital 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 these methods it has used to derive peak ratio information.

4A.
The General Short Form Disclosure Statement shall disclose the following information:

(a) the rating-contingent limit which is applicable to the Banking Group as at the Off-Quarter Balance Date;

(b) a statement as to whether any limit changes have occurred over the most recent quarter, and if so, the nature of those changes, and the dates on which they occurred;

(c) a statement that within the overall rating-contingent limit, there is a sub-limit of 15% of Tier One Capital which applies to the aggregate Credit Exposure to Non-Bank Connected Persons;

(d)
(i) a statement as to whether the limits on aggregate Credit Exposure to all Connected Persons and to Non-Bank Connected Persons in the Registered Bank’s Conditions of Registration, have been complied with at all times over the most recent quarter; and

(ii) if not, the nature and amount of any breaches of those limits;

(e) a statement as to whether aggregate Credit Exposure to Connected Persons has been calculated on a gross or a bilateral net basis;

and if any part of the calculation has been undertaken on a bilateral net basis, then the following additional information:

(i) in respect of aggregate Credit Exposure to Connected Persons as at the Off-Quarter Balance Date, and in respect of peak end-of-day aggregate Credit Exposure to Connected Persons over the most recent quarter:

(A) the gross amount, as a percentage of Tier One Capital, before any netting has taken place;

(B) the amount, as a percentage of Tier One Capital, which has been netted off in determining the net exposure;

(ii) a statement that there is a limit of 125% of Banking Group Tier One Capital in respect of the gross amount of aggregate Credit Exposure to Connected Persons which can be netted off in determining the net exposure.

4B.
Where in accordance with its Conditions of Registration, the aggregate Credit Exposure of the Banking Group to Connected Persons has been calculated on a bilateral net basis, the General Short Form Disclosure Statement shall, unless the content of the Supplemental Disclosure Statement is contained in the General Short Form Disclosure Statement:

(a) state that a copy of the Registered Bank’s most recent Supplemental Disclosure Statement which contains:

(i) a copy of the bilateral netting agreement; and

(ii) if an industry standard agreement is not used, a copy of the advice from an independent third party expert validating the robustness of the agreement;

will be provided immediately at no charge to any person requesting a copy where the request is made at the Registered Bank’s head office;

(b) state the categories of places where a copy of the Registered Bank’s most recent Supplemental Disclosure Statement which contains:

(i) a copy of the bilateral netting agreement;