Document ID: chunk:federal_register_of_legislation:F2022L01348:body:0:p7
Version: federal_register_of_legislation:F2022L01348
Segment Type: other
Provision Reference: 
Character Range: 16787–19723

future date, and on pre-arranged terms, a loan, security or other asset from another entity, including written put options on specified assets with the character of a credit enhancement.

For the purposes of this item, non-market-related off-balance sheet forward asset purchases exclude:

    * commitments where the entity purchasing the asset has an unequivocal right to substitute cash settlement in place of accepting delivery of the asset, and the price on settlement is calculated with reference to a general market price indicator (and not to the financial condition of any specific entity). This is deemed a market-related off-balance sheet transaction; and

    * written put options expressed in terms of market rates for currencies or financial instruments bearing no credit risk. This is also deemed a market-related off-balance sheet transaction.

    7.             Partly paid shares and securities

This is the value, as at the relevant date, of any potential credit exposures (off-balance sheet) arising from partly paid shares and securities. This includes any amounts owing on the uncalled portion of partly paid shares, as well as securities held by an entity that represent commitments with certain drawdown by the issuer at a future date.

    8.             Placements of forward deposits

This is the value, as at the relevant date, of any potential credit exposures relating to the placements of forward deposits. Placements of forward deposits are off-balance sheet transactions that relate to any agreement between an entity and another party whereby the entity will place a deposit at an agreed rate of interest with that party at a predetermined future date.

    9.             Surety bonds

This is the value, as at the relevant date, of surety bonds which are treated as a type of direct credit substitute by the reporting insurer, in accordance with Attachment B of GPS 114.

    10.        All other non-market-related off balance sheet items

This is a balancing item and is the value, as at the relevant date, of all other non-market-related off-balance sheet transactions giving rise to credit risk.

This is automatically calculated as Item 11 less the sum of Items 1 to 9.

    11.        Total non-market-related off balance sheet business

This is the value, as at the relevant date, of all credit substitutes that are not transacted in financial markets.

     11.1.           Of which: deemed as Inside Australia

Of the value of all credit substitutes that are not transacted in financial markets, report the value that relates to business that is deemed to be inside Australia in accordance with Prudential Standard GPS 120 Assets in Australia (GPS 120).

    12.        Total non-market related off balance sheet business (total of item 11) which are provided to related parties

Of the value of all credit substitutes that are not transacted in financial markets, report