✨ Banking Regulations
2338 NEW ZEALAND GAZETTE, No. 88 24 JUNE 2011
4
Peak end-of-day aggregate exposure
(1)
For the purposes of this schedule, peak end-of-day aggregate credit exposure to connected persons as a ratio to tier one capital for the most recent quarter of the interim accounting period or the accounting period (as applicable) is derived by—
(a) determining the maximum end-of-day aggregate amount of credit exposure over the quarter; and
(b) then dividing that amount by—
(i) the banking group’s tier one capital as at the end of the quarter; or
(ii) the banking group’s tier one capital at the date the maximum end-of-day aggregate amount of credit exposure occurred.
(2)
A statement of the method used to derive peak ratio information.
5
Rating-contingent limit
The following information:
(a) the rating-contingent limit that applies to the banking group as at the 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 that applies to the aggregate credit exposure to non-bank connected persons.
6
Additional requirements for aggregate credit exposure to connected persons
(1)
A statement as to whether aggregate credit exposure to connected persons has been calculated on a gross or a bilateral net basis.
(2)
If any part of the calculation has been undertaken on a bilateral net basis, the following additional information:
(a) in respect of aggregate credit exposure to connected persons as at the balance date, and in respect of peak end-of-day aggregate credit exposure to connected persons over the most recent quarter of the accounting period or interim accounting period (as applicable)—
(i) the gross amount, as a percentage of tier one capital, before any netting has taken place; and
(ii) the amount, as a percentage of tier one capital, that has been netted off in determining the net exposure:
(b) 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 that can be netted off in determining the net exposure:
(c) a statement that the registered bank’s most recent supplemental disclosure statement 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
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NZ Gazette 2011, No 88
✨ LLM interpretation of page content
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Schedule 7: Credit exposures to connected persons
(continued from previous page)
💰 Finance & RevenueCredit exposure, Banking regulations, Financial disclosures, Connected persons, Credit risk