Document ID: chunk:federal_register_of_legislation:F2024L01075:body:0:p9
Version: federal_register_of_legislation:F2024L01075
Segment Type: other
Provision Reference: 
Character Range: 22608–25736

be treated as general provisions; and
         3.           ECL Stage 3 provisions would be treated as specific provisions.
 5.          When completing templates and tables relating to credit risk, an ADI must use equivalent terminology relevant to other Prudential Standards, including:
         1.           'non-performing exposures' as defined in Prudential Standard APS 220 Credit Risk Management (APS 220) rather than 'defaulted exposures'; and
         2.           'restructured exposures' as defined in APS 220 rather than 'forborne exposures'.
 6.          An ADI must use the relevant asset class categories and definitions set out in APS 112 and APS 113 when disclosing credit RWA for each asset class. This includes not making disclosures for the asset class 'high-volatility commercial real estate lending'.
 7.          An ADI must convert all references to 'obligors' in the BCBS Standard to 'borrower' or 'counterparty'. A group of connected obligors would mean a group of connected counterparties that is connected by control or single-risk relationships. Where an ADI assesses that a borrower may form part of more than one group of connected borrowers, the ADI may primarily assign the borrower based on a control relationship rather than a single-risk relationship.
 8.          An ADI must publicly disclose information on losses in income-producing real estate as required under paragraph 6(d) of Attachment E to APS 113 as part of their public disclosures required under this Prudential Standard. This information must be disclosed on an annual basis.
 9.          An ADI must include its off-balance sheet exposures in its disclosure of changes in stock of defaulted loans and debt securities.

Counterparty credit risk
 1.          An ADI is not required to make counterparty credit risk disclosures relating to the Internal Model Method or value-at-risk for securities financing transactions.
 2.          When disclosing derivative exposures under the BCBS Standard, an ADI must disclose their derivative exposures under the APRA and Reserve Bank of New Zealand (RBNZ) methodologies separately.

Securitisation
 1.          A reference to 'originator' or 'sponsor' means an 'originating ADI' as defined in paragraph 12(o) of Prudential Standard APS 120 Securitisation (APS 120).
 2.          An ADI is not required to complete disclosure requirements related to the BCBS's internal assessment approach, the 'simple, transparent and comparable' framework or the IRB securitisation framework.
 3.          An ADI is not required to complete securitisation disclosures relating to mixed asset pools. Where the underlying collateral is mixed, the securitisation exposure should be disclosed as a line item either under 'retail' or wholesale'.
 4.          An ADI must treat references to 1250 per cent risk weights as deductions from Common Equity Tier 1 Capital (CET1).
 5.          An ADI must treat references to the Standardised Approach (SEC-SA) as the Supervisory Formula Approach as set out in Attachment C to APS 120.
 6.          Securitisation exposures of an ADI's overseas banking subsidiary