Document ID: chunk:federal_register_of_legislation:F2022L01620:reg:100:p10
Version: federal_register_of_legislation:F2022L01620
Segment Type: reg
Provision Reference: reg 100 (pt 10/12)
Character Range: 90624–93553

must assign a 50 per cent RSF factor to the following assets:

       (a)          unencumbered HQLA2B assets as defined in paragraph 12 of Attachment A;

       (b)          any HQLA as defined in Attachment A that are encumbered for a period of between six months and less than one year;

       (c)          all loans to financial institutions and central banks with a residual maturity of between six months and less than one year;

       (d)          operational deposits held at other ADIs that are subject to a 50 per cent ASF factor in paragraph 14(b) of this Attachment;

       (e)          Australian equities, other than financial institutions or associated entities (as defined in section 50AAA of the Corporations Act 2001), that trade on the Australian Securities Exchange (ASX) and form part of the S&P/ASX200 stock index; and

       (f)           all other non-HQLA not included in the above categories that have a residual maturity of less than one year, including loans to non-financial corporate clients, loans to retail customers (i.e. natural persons) and SME customers and loans to sovereigns and PSEs.

Assets assigned a 65 per cent RSF factor

    35.         An ADI must assign a 65 per cent RSF factor to the following assets:

       (a)          unencumbered standard residential property loans to an individual (that is, a natural person) or individuals with a residual maturity of one year or more and a loan-to-valuation ratio of 80 per cent or below, as defined under APS 112; and

       (b)          other unencumbered loans not included in the above categories, excluding loans to financial institutions, with a residual maturity of one year or more that are subject to or would qualify for a 35 per cent or lower risk weight under APS 112.

Assets assigned an 85 per cent RSF factor

    36.         An ADI must assign an 85 per cent RSF factor to the following assets:

       (a)          cash, securities or other assets, whether on- or off-balance sheet, posted as an initial margin for derivative contracts and cash or other assets provided to contribute to the default fund of a central counterparty (CCP).[26] Where securities or other assets posted as an initial margin for derivative contracts would otherwise receive a higher RSF factor, they must be assigned the higher factor;

       (b)          other unencumbered performing loans that do not qualify under paragraph 35 of this Attachment that have residual maturities of one year or more, excluding loans to financial institutions; [27]

       (c)          unencumbered securities with a remaining maturity of one year or more and exchange-traded equities, that are not in default and do not qualify as HQLA; and

       (d)          physical traded commodities, including gold.

Assets assigned a 100 per cent RSF factor

    37.         An ADI must assign a 100 per cent RSF factor to the following assets: