✨ Banking Regulations
Equity exposures
| Total exposure | Risk weight | Risk weighted exposure | Minimum Pillar 1 capital requirement | |
|---|---|---|---|---|
| Equity holdings (not deducted from | 300% | |||
| capital) that are publicly traded | ||||
| All other equity holdings (not | 400% | |||
| deducted from capital) |
9 Scalar
(1) For the purpose of the disclosure required by this Schedule, risk-weighted on- and off-balance sheet credit exposures and capital requirements must be the amounts after multiplying by the scalar (if any) specified in the conditions of registration relating to capital adequacy.
(2) If applicable,—
(a) an explanation of which figures disclosed are shown after multiplying by the scalar referred to in subclause (1); and
(b) a statement of the value of the scalar.
10 Operational risk
(1) The information in subclause (2)—
(a) in respect of the registered bank’s banking group; and
(b) derived in accordance with the conditions of registration relating to capital adequacy.
(2) The following information as at the reporting date:
Operational risk capital requirement
| Approach implemented: | Implied risk weighted exposure | Total operational risk capital requirement |
|---|---|---|
| Operational risk |
(3) For the purpose of the disclosure required by subclause (2)—
(a) approach implemented means the capital adequacy approach to operational risk implemented by the registered bank in accordance with its conditions of registration relating to capital adequacy;
(b) implied risk weighted exposure must be calculated as 12.5 x total operational risk capital requirement.
11 Market risk end-period capital charges
(1) The information in subclause (2)—
(a) in respect of the registered bank’s banking group; and
(b) derived in accordance with the conditions of registration relating to capital adequacy.
(2) The following information as at the reporting date:
Market risk
| Implied risk weighted exposure | Aggregate capital charge | |
|---|---|---|
| Interest rate risk | ||
| Foreign currency risk | ||
| Equity risk |
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NZ Gazette 2013, No 154
✨ LLM interpretation of page content
💰
Capital adequacy under the internal models based approach
(continued from previous page)
💰 Finance & RevenueCapital adequacy, Internal models, Banking regulations, Capital structure, Risk management
💰 Equity exposures disclosure requirements
💰 Finance & RevenueEquity holdings, Risk weights, Capital requirements, Banking disclosure
💰 Scalar application in risk-weighted calculations
💰 Finance & RevenueRisk-weighted exposures, Scalar multiplication, Capital adequacy, Banking disclosure
💰 Operational risk capital requirement disclosure
💰 Finance & RevenueOperational risk, Capital requirement, Banking group, Risk-weighted exposure
💰 Market risk end-period capital charges
💰 Finance & RevenueMarket risk, Capital charges, Interest rate risk, Foreign currency risk, Equity risk