✨ Credit Exposure Regulations
2504 NEW ZEALAND GAZETTE, No. 88 24 JUNE 2011
(a) the total amount of credit exposure to those counterparties that have a credit rating that is of investment grade:
(b) the total amount of credit exposure to those counterparties that have a credit rating that is below investment grade:
(c) the total amount of credit exposure 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.
(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 6(2):
(a) the total amount of credit exposure to those counterparties that have a credit rating that is of investment grade:
(b) the total amount of credit exposure to those counterparties that have a credit rating that is below investment grade:
(c) the total amount of credit exposure 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.
9 Meaning of credit rating
(1) For the purposes of clauses 2 and 8, 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 (which is not 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 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 lower credit rating applies.
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NZ Gazette 2011, No 88
✨ LLM interpretation of page content
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Schedule 5 - Concentration of credit exposures to individual counterparties
(continued from previous page)
💰 Finance & RevenueCredit exposure, Financial records, Comparative figures, Credit risk, Banking group, Large bank exposures, Large non-bank exposures, Peak end-of-day aggregate credit exposure, Aggregate credit exposure
💰 Meaning of credit rating
💰 Finance & RevenueCredit rating, Rating criteria, Long term senior unsecured obligations, Rating agency, Reserve Bank approval