23 FEBRUARY 2007

NEW ZEALAND GAZETTE, No. 21

503

with movements reconciled to the charges allocated to the statement of financial performance; and
information on movements in the balance of the General Provision over the First Quarter Accounting Period or
Third Quarter Accounting Period, separately disclosing:

(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.

Fifth 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:

(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 Off-Quarter Balance Date, or the most recently publicly disclosed amount. Where the Overseas Banking Group’s Equity
   is not determined as at the Off-Quarter Balance Date, the General Short Form Disclosure Statement shall state the date to
   which the measure of Equity relates.

4. 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 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 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.

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

6. 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 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 6(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;