Document ID: chunk:federal_register_of_legislation:F2024L01124:body:0:p28
Version: federal_register_of_legislation:F2024L01124
Segment Type: other
Provision Reference: 
Character Range: 76268–78907

whether it is included in Tier 2 Capital (refer to APS 220).

          Report the total amount in the provisions held against performing exposures that represent unidentified losses without taking into account the limits applicable on the inclusion of this amount in Tier 2 Capital.

     1.              Exposure measure for leverage ratio

Column 1  Report the value.  This value is to be reported at the highest consolidation level only: Level 2 if applicable, Level 1 otherwise.
          Daily averaging should be used for the calculation of Security Financial Transactions (SFT) exposures. The average of daily values over the quarter may be calculated as a best estimate, provided that this is undertaken on a consistent and prudent basis, with appropriate supporting governance and procedures.

Item 3.1  Report On-balance sheet exposures, as set out in APS 110.
Item 3.2  Report Non-market related off-balance sheet exposures, as set out in APS 110.
Item 3.3  Report Derivative exposures, as set out in APS 110.
Item 3.4  Report Securities financing transaction exposures, as set out in APS 110.
Item 3.5  Total exposures is a derived field calculated as the sum of items 3.1, 3.2, 3.3 and 3.4 above.

    [1]   'Level 1' and 'Level 2' have the respective meanings given to those expressions in APS 001.
    [2]  Refer to paragraph 6 of Reporting Standard ARS 110.0 Capital Adequacy.
    [3] 'group' has the meaning given to that expression in APS 001.
    [4]  Securitisation exposures are defined in accordance with APS 120.
[5]  Made by the AASB under section 334 of the Corporations Act 2001,
    [6]  An originating ADI is not required to deduct from Common Equity Tier 1 Capital the difference between the book value and the amount received, where the ADI has included the underlying exposures in the pool in the calculation of regulatory capital under Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112) or Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk (APS 113).
    [7]  This excludes holdings of subordinated debt in commercial (non-financial) entities. Refer to paragraph 25 of Attachment D to APS 111. All other holdings of capital instruments, including preference shares, even if classified as debt, must be deducted from Common Equity Tier 1.

[8] Both documents are as existing at the commencement of this Reporting Standard and are available on the RBNZ's website at https://www.rbnz.govt.nz/regulation-and-supervision/oversight-of-banks/standards-and-requirements-for-banks/capital-and-credit-risk-requirements