Document ID: chunk:federal_register_of_legislation:F2024L01124:body:0:p22
Version: federal_register_of_legislation:F2024L01124
Segment Type: other
Provision Reference: 
Character Range: 60381–63115

2 Capital instrument if the exposure is disposed of within five days of the date of issue. If the exposure is not disposed of within five days of issuance, it must be reported; or

                    *                 exposures that are held under a legal agreement on behalf of:

                          1.              at Level 1 - an external third party, even if held in the name of the reporting entity; or

                          2.              at Level 2 - a party outside the Level 2 consolidated group, even if held in the name of the reporting entity (or another member of its Level 2 consolidated group).

Item 2.2.2    Report Holdings of own Tier 2 Capital instruments and any unused trading limit agreed with APRA.
              This is the value, as at the relevant date, of the reporting entity's holdings of its own Tier 2 Capital instruments, unless exempted by APRA or eliminated through the application of Australian Accounting Standards. Include any unused trading limit on these instruments where agreed with APRA and own Tier 2 Capital instruments that the ADI could be contractually obliged to purchase, regardless of whether they are held on the banking or trading books. Refer to APS 111.
Item 2.2.3    Report Adjustments and exclusions to Tier 2 Capital.

              This is the amount of adjustments applied to Tier 2 Capital that are specific to the application of the requirements of APS 111.

Item 2.3      Report Tier 2 Capital.
              This is a derived field on the form. It is the sum of the amounts reported in items 2.1.1 to 2.1.3.1 less the sum of amounts reported in items 2.2.1 to 2.2.2, less the amount reported in item 2.2.3.

    3.  Level 1 / Level 2 Total Capital

Column 1  Report the value.

Item 3  Report Total Capital.
        This is a derived item and is calculated as the sum of items 1.4 Tier 1 Capital and 2.3 Tier 2 Capital.

Section B: Risk Profile
This section summarises an ADI's RWA amounts for credit, operational and market risks and any other charges as required by APRA. To convert a capital charge for operational risk, market risk or any other item to a RWA equivalent amount, the amount of the charge must be multiplied by a factor of 12.5. The total RWA amount is used to calculate the capital adequacy ratio.

This form is designed to be used by all ADIs, irrespective of the approaches an individual ADI is applying to credit risk, operational risk and market risk. Consequently, not all line items are relevant to each ADI. An ADI must determine the line items it is required to complete based on the approaches it is applying.

     1.      Credit risk (excluding exposures in New Zealand subsidiaries)

This section captures the total