✨ Banking Regulations
528 NEW ZEALAND GAZETTE, No. 21 21 FEBRUARY 2014
(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 exposures to counterparties (excluding counterparties that are connected persons) as at the balance date.
Next Page →
NZ Gazette 2014, No 21
✨ LLM interpretation of page content
💰
Credit Risk and Capital Adequacy Requirements for Registered Banks
(continued from previous page)
💰 Finance & RevenueBanking, Capital Adequacy, Credit Risk, Credit Rating, Reserve Bank of New Zealand