✨ Banking Regulation Details
24 AUGUST 2012 NEW ZEALAND GAZETTE, No. 102 2909
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 full year accounting period is derived by—
(a) determining the maximum end-of-day aggregate amount of credit exposure over the accounting period; and
(b) then dividing that amount by—
(i) the registered bank’s banking group’s tier one capital as at the reporting date; or
(ii) the registered bank’s 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 registered bank’s banking group as at the balance date;
(b) a statement as to whether any limit changes have occurred over the full year accounting period, and if so, the nature of those changes, and the dates on which they occurred; and
(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 full year accounting period—
(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; and
(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.7 Aggregate amount of contingent exposures arising from risk lay-off arrangements
A statement of the aggregate amount of contingent exposures of the registered bank’s banking group to connected persons arising from risk lay-off arrangements in respect of credit
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NZ Gazette 2012, No 102
✨ LLM interpretation of page content
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Credit exposure to connected persons
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💰 Finance & RevenueCredit exposure, Connected persons, Disclosure statement, Peak end-of-day aggregate exposure, Rating-contingent limit