✨ Banking Regulations
30 AUGUST 2013 NEW ZEALAND GAZETTE, No. 121 3373
6 Method of calculating peak end-of-day aggregate credit exposure
For the purposes of clause 5, peak end-of-day aggregate credit exposure to an individual counterparty or a group of closely related counterparties for the period between the reporting date for the previous disclosure statement and the reporting date for the disclosure statement is derived by—
(a) determining the maximum end-of-day aggregate amount of credit exposure over the period; and
(b) then dividing that amount by the registered bank’s overseas banking group’s equity.
7 Meaning of credit rating
(1) For the purposes of clauses 2, 4 and 5, 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 are not members 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 2013, No 121
✨ LLM interpretation of page content
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Large exposures reporting requirements
(continued from previous page)
💰 Finance & RevenueLarge exposures, Credit risk, Banking supervision, Counterparty risk
💰 Method of calculating peak end-of-day aggregate credit exposure
💰 Finance & RevenueCredit exposure, Banking, Counterparty risk, Reporting requirements
💰 Meaning of credit rating
💰 Finance & RevenueCredit rating, Banking, Counterparty risk, Reporting requirements