✨ Banking Regulations
2402 NEW ZEALAND GAZETTE, No. 88 24 JUNE 2011
(2) The following information as at the off-quarter balance date and in respect of the individual non-bank counterparties, and groups of closely related counterparties of which a bank is not the parent, referred to in clause 5(2):
(a) the total amount of credit exposures to those counterparties that have a credit rating that is of investment grade:
(b) the total amount of credit exposures to those counterparties that have a credit rating that is below investment grade:
(c) the total amount of credit exposures to those counterparties that do not have a credit rating:
(d) the percentage each of the amounts referred to in paragraphs (a) to (c) represents in relation to the aggregate of the amounts referred to in those paragraphs.
8 Meaning of credit rating
(1) For the purposes of clauses 2 and 7, credit rating means a credit rating that meets the criteria in subclause (2) and that,—
(a) in the case of a group of closely related counterparties, applies to the entity heading the group of closely related counterparties; or
(b) in the case of an individual counterparty (excluding a member of a group of closely related counterparties), applies to the individual counterparty.
(2) The following criteria:
(a) a credit rating that applies to—
(i) the relevant entity’s long term senior unsecured obligations payable in New Zealand, in New Zealand dollars; or
(ii) the relevant entity’s long term senior unsecured foreign currency obligations:
(b) a credit rating given by a rating agency that has been approved by the Reserve Bank of New Zealand under section 80 of the Act.
(3) If an entity has 2 or more credit ratings that meet the criteria in subclauses (1) and (2) and those credit ratings are not the same, then the lowest credit rating applies.
9 Meaning of investment grade credit rating
For the purposes of this schedule, an investment grade credit rating means a credit rating of BBB- or Baa3 or above, or its equivalent.
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NZ Gazette 2011, No 88
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Concentration of credit exposures to individual counterparties
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💰 Finance & RevenueCredit exposure, Banking regulations, Financial disclosure, Comparative figures, Risk management