✨ Banking Capital Requirements




NEW ZEALAND GAZETTE, No. 102

24 AUGUST 2012

Calculation of on-balance-sheet exposures

Total exposure after credit risk mitigation Risk weight Risk weighted exposure Minimum Pillar 1 capital requirement
Cash and gold bullion 0%
Sovereigns and central banks 0%
20%
50%
100%
150%
Multilateral development banks and other international organisations 0%
20%
50%
100%
150%
Public sector entities 20%
50%
100%
150%
Banks 20%
50%
100%
150%
Corporate 20%
50%
100%
150%
Residential mortgages not past due 35%
50%
75%
Past due residential mortgages 100%
Other past due assets 100%
Equity holdings (not deducted from capital) 150%
that are publicly traded 300%
All other equity holdings (not deducted from capital) 400%
Other assets 100%

Calculation of off-balance sheet exposures

Total exposure Credit conversion factor Credit equivalent amount Average risk weight Risk weighted exposure Minimum Pillar 1 capital requirement
Direct credit substitute 100%
Asset sale with recourse 100%
Forward asset purchase 100%
Commitment with certain drawdown 100%
Note issuance facility 50%
Revolving underwriting facility 50%
Performance-related contingency 50%
Trade-related contingency 20%
Placements of forward deposits 100%
Other commitments where original maturity is more than one year 50%
Other commitments where original maturity is less than or equal to one year 20%


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Online Sources for this page:

Gazette.govt.nz PDF NZ Gazette 2012, No 102





✨ LLM interpretation of page content

πŸ’° Financial Disclosure Requirements for Registered Banks (continued from previous page)

πŸ’° Finance & Revenue
Disclosure, Financial statements, Capital adequacy, Standardised approach, Banking group

πŸ’° Calculation of on-balance-sheet exposures for capital adequacy

πŸ’° Finance & Revenue
Capital adequacy, Risk weight, Exposure, Banking, Financial regulation

πŸ’° Calculation of off-balance-sheet exposures for capital adequacy

πŸ’° Finance & Revenue
Capital adequacy, Off-balance-sheet, Credit conversion, Risk weight, Banking, Financial regulation