Document ID: chunk:federal_register_of_legislation:F2024L01182:body:0:p12
Version: federal_register_of_legislation:F2024L01182
Segment Type: other
Provision Reference: 
Character Range: 31127–33914

as either:
         1.           a non-maturity deposit, which is a deposit that has no specified maturity date and can be withdrawn at any time without notice; or
         2.           an other principal-and-interest (OPI) item.
 3.              A core deposit is a component of a portfolio of non-maturity deposits that:
         1.           has a stable balance; and
         2.           pays an interest rate that:
                 1.             is managed by the ADI; and
                 2.          does not usually change in response to movements in wholesale market rates.
An ADI must determine the balance and repricing profile of each core deposit by a method whereby the balance is expected to usually be no more than 90 per cent of the balance of the deposit product, or portfolio of products or parts thereof, in which it lies.
 1.          An ADI may split a banking book item, or a portfolio of such items, into two or more parts, and classify or model each part differently. For the purpose of this Attachment, a reference to a banking book item may also refer to such a part and a reference to a portfolio of banking book items may refer to a portfolio of such parts. An ADI may, with APRA's approval, treat multiple items arising from different products as a single item.

Interest rate data
 1.          For the purpose of this Prudential Standard, a risk factor is a stochastic process indexed by time, whose values are used in calculating economic values of banking book items, and for which negative values are possible. A reference to a risk factor at a specified date designates the random variable indexed by that date, in the process.
 2.          For each currency to which an ADI has a material exposure in the banking book, the ADI must identify and collect data to enable modelling of a single, maturity-indexed, collection of risk factors. This is the non-market-related curve or NMR curve for that currency. The risk factors in each NMR curve must correspond to interest rates suitable for discounting cash flows. An ADI may combine currencies to which it has non-material exposures into one or more groups and select a single NMR curve for each group based on rates in a currency, or composite of currencies, broadly reflective of the interest rate characteristics of the group. An ADI may, with APRA's approval, use more than one NMR curve per currency to which an ADI has non-material exposures.
 3.          An ADI must also identify and collect data to enable modelling of all non-issuer-specific risk factors for which changes in their values can cause material changes in the economic value of the ADI's market-related items. Where available, different risk factor collections ('curves') must be used for modelling the yields on different types