Document ID: chunk:federal_register_of_legislation:F2024L01073:front:0:p16
Version: federal_register_of_legislation:F2024L01073
Segment Type: other
Provision Reference: 
Character Range: 41916–44848

9 where:
         1.           the cover pool includes only the following assets:
                 1.             loans to, or guaranteed by, sovereigns or domestic PSEs;
                 2.          loans to, or guaranteed by, banks that qualify for a risk weight of 30 per cent or lower in accordance with paragraphs 8 to 10 of this Attachment; however, such assets cannot exceed 15 per cent of the cover pool;
                 3.        residential property exposures that meet the requirements in paragraphs 3 to 7 of Attachment A to this Prudential Standard for covered bonds issued in Australia, and as defined by the relevant supervisory authority for covered bonds issued in other jurisdictions, with an LVR equal to or less than 80 per cent; and
                 4.         commercial property exposures that meet the requirements in paragraphs 3 to 7 of Attachment A to this Prudential Standard for covered bonds issued in Australia, and as defined by the relevant supervisory authority for covered bonds issued in other jurisdictions, with an LVR equal to or less than 60 per cent;
         2.           the nominal value of the cover pool exceeds the nominal outstanding value of the covered bond by at least 10 per cent; and
         3.           the conditions set out in this paragraph are satisfied at the time of issuance, and at all times throughout the remaining maturity of the covered bond.
 2.          An ADI must be able to demonstrate to APRA that, at a minimum, the following information is available to the ADI on at least a semi-annual basis:
         1.           the value of the cover pool and outstanding covered bonds;
         2.           the geographical distribution and type of cover assets, loan size, interest rate and currency risks;
         3.           the maturity structure of assets in the cover pool and of the covered bonds; and
         4.           the percentage of loans that are 90 days or more past-due.
 3.          Where a covered bond is unrated or does not meet the requirements set out in paragraphs 15 and 16 of this Attachment, an ADI must treat the covered bond as a bank exposure and apply the risk weights in Table 7.

Corporate exposures
 1.          An exposure to a corporate counterparty includes all exposures to incorporated entities, associations, partnerships, proprietorships, trusts, funds and other entities that do not meet the definition of any other asset class. Exposures to financial institutions, excluding banks but including insurance companies or securities companies, must be treated as corporate exposures. Exposures to equity or subordinated debt, or exposures through a third party as detailed in paragraph 41 of this Attachment, must not be included as corporate exposures.

General corporate – rated exposures
 1.          An ADI must apply the risk weights in Table 10 to its general corporate exposures with an external credit rating.

 1.