✨ Banking Risk Management Policies
2918 NEW ZEALAND GAZETTE, No. 102 24 AUGUST 2012
(iii) any policies on the use of financial instruments
to mitigate or hedge risks; and
(iv) strategies and processes for monitoring the
continuing effectiveness of hedges and other
mitigants.
3 Capital adequacy
A summary discussion of the following matters, to the extent
not otherwise disclosed to comply with paragraph 134 of
NZ IAS 1:
(a) the registered bank’s banking group’s approach to
assessing the adequacy of its capital to support current
and future activities; and
(b) the role that directors and senior management take in
the capital management process.
4 Reviews of banking group’s risk management systems
A statement as to—
(a) the nature and frequency of any reviews conducted in
respect of the registered bank’s banking group’s risk
management systems; and
(b) whether or not any such reviews were conducted by a
party external to the registered bank’s banking group,
ultimate parent bank, or ultimate holding company.
5 Internal audit function of banking group
(1) A statement on whether or not the registered bank’s banking
group has an internal audit function.
(2) If the registered bank’s banking group has an internal audit
function, a statement describing—
(a) the nature and scope of the internal audit function,
including type and frequency of audits;
(b) the reporting responsibilities of the internal audit
function; and
(c) whether or not there is a board audit committee or other
separate board committee covering audit matters, and if
so, the nature and scope of that committee’s
responsibilities.
6 Measurement of impaired assets
(1) The information in subclause (2), to the extent not otherwise
disclosed to comply with paragraph 21 of NZ IFRS 7.
(2) A description of approaches followed for individual and
collective allowance for impaired assets, and any statistical
methods used in assessing asset impairment, including the
following information:
(a) the circumstances and criteria under which financial
assets are assessed individually;
(b) the circumstances and criteria under which financial
assets are assessed collectively with other financial
assets;
(c) the frequency of assessing impairment; and
(d) how recoverable amounts are calculated.
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NZ Gazette 2012, No 102
✨ LLM interpretation of page content
💰
Risk Management Policies for Banking Groups
(continued from previous page)
💰 Finance & RevenueRisk management, Banking regulations, Credit risk, Operational risk, Capital adequacy, Financial instruments, Hedge effectiveness, Capital adequacy assessment, Internal audit, Impaired assets