Banking Credit Exposure Regulations




27 FEBRUARY 2008

NEW ZEALAND GAZETTE, No. 40

983

Schedule 6

Concentration of credit exposures to individual counterparties

Contents

Page

1 Credit exposure information: general requirements................................... 983

2 Calculation of credit exposure information................................................ 983

3 Comparative figures................................................................................... 983

4 Large bank exposures ................................................................................ 983

5 Large non-bank exposures ......................................................................... 984

6 Peak end-of-day aggregate credit exposure ............................................... 984

7 Aggregate credit exposure ......................................................................... 984

8 Meaning of credit rating............................................................................. 985

9 Meaning of investment grade credit rating ................................................ 985

————————

1

(1)

(2)

Credit exposure information: general requirements

In this schedule, credit exposure information must be disclosed

either on the basis of—

(a) actual credit exposures; or

(b) internal limits that were not materially exceeded during
the accounting period or the interim accounting period
(as applicable).

A statement of the method used for disclosing the credit
exposure information required by this schedule.

2

Calculation of credit exposure information

The credit exposure information required by this schedule
must—

(a) be calculated as the amount that best represents the
banking group’s maximum exposure to credit risk
taking account of the guidance in paragraphs B9 and
B10 of NZ IFRS7; and

(b) exclude credit exposures to connected persons; and

(c) exclude credit exposures to the central government of
any country with a long-term credit rating of A- or A3
or above, or its equivalent.

3

Comparative figures

The information that is required to be disclosed under this
schedule must include comparative figures for the previous
corresponding period.

4

(1)

Large bank exposures

The information in subclause (2) in successive ranges of 10%
of equity, commencing at 10% of equity —

(a) as the balance date; and

(b) in respect of peak end-of-day aggregate credit exposure
for the most recent quarter of the accounting period or
interim accounting period (as applicable).

The number of individual bank counterparties (which are not
members of a group of closely related counterparties) and
groups of closely related counterparties of which a bank is the
parent to which the banking group has an aggregate credit

(2)



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Online Sources for this page:

VUW Te Waharoa PDF NZ Gazette 2008, No 40


Gazette.govt.nz PDF NZ Gazette 2008, No 40





✨ LLM interpretation of page content

💰 Concentration of Credit Exposures to Individual Counterparties

💰 Finance & Revenue
Credit exposure, Banking regulations, Risk management, Financial disclosures