✨ Banking Regulations
592 NEW ZEALAND GAZETTE, No. 21 21 FEBRUARY 2014
(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 2014, No 21
✨ LLM interpretation of page content
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Schedule 10—All periods
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💰 Finance & RevenueBanking regulations, Credit exposures, Reporting requirements, Basel frameworks, Financial records