Document ID: chunk:federal_register_of_legislation:F2024L00434:body:0:p47
Version: federal_register_of_legislation:F2024L00434
Segment Type: other
Provision Reference: 
Character Range: 173782–177407

ordinary senior/subordinated debt in that junior securitisation tranches can absorb losses without interrupting contractual payments to more senior tranches, whereas subordination in a senior/subordinated debt structure is a matter of priority of rights to the proceeds of liquidation.

                                                          The securities are backed by a pool of specific assets, often housing loans, and the securities can be short-term or long-term.

                                                          Securitisation exposures have the meaning in Prudential Standard APS 120 Securitisation (APS 120).

Security                                                  Means an asset (or assets) pledged by the borrower or a third party against a loan.  In the event of default by the borrower, the lender has recourse to this asset.

Self-securitised                                          Relates to a securitisation that is solely for the purpose of using the securities created as collateral in order to obtain funding via a repurchase agreement with the RBA.

                                                          Self-securitisation is also known as an internal securitisation.

Semi-government securities                                Means the debt obligations of a central borrowing authority of a state or territory of the Commonwealth of Australia.

                                                          It includes: fixed-interest rate bonds, linked bonds and Treasury notes issued by a state or territory of the Commonwealth of Australia.

Senior unsecured debt                                     Means any unsecured debt security that must be repaid ahead of all other unsecured and subordinated debt security holders other than those outlined in paragraphs 13A(3)(a)-(e) of the Banking Act 1959 in the event that the ADI is unable to meet its obligations or is about to suspend payment.

Set-off accounts                                          Means linked deposit and loan accounts that pay a different interest rate depending on whether the linked accounts are in a net loan or net deposit position.

                                                          They are similar to offset accounts but differ in that, if the linked accounts are in a net deposit position, the customer will be due interest.

Share-based payment expense                               Refers to employee share-based payments and stock options, expensed to the ADI or RFC for remunerating employees, incurred during the period.

Shops                                                     Means any non-residential buildings (or parts of such buildings) where the primary purpose is to sell goods or services.

Short-sold position(s)                                    Means the value of positions from the sale of borrowed securities.

Short-term                                                Means an original maturity of less than or equal to 12 months.

Small (business size)                                     A business is classified as small if the ADI or RFC has an exposure to the business that is less than $1.5 million and the business has turnover of less than $75 million.

                                                          Include exposures classified by ADIs using the internal ratings-based approach to credit risk as 'SME Retail' in this category.

Standard margin loans                                     Means margin loans that typically have a maximum allowable LVR of 40 to 80 per cent, depending on the type of stock or managed fund that is provided as security for