Document ID: chunk:federal_register_of_legislation:F2022L01348:body:0:p6
Version: federal_register_of_legislation:F2022L01348
Segment Type: other
Provision Reference: 
Character Range: 13975–17057

prior endorsement of, another authorised deposit-taking institution. Report only bills that constitute direct credit substitutes.

     1.5.               Other direct credit substitutes

This is the value of all other credit substitutes that do not appropriately fall under the above categories.

This is automatically calculated as Item 1 less the sum of Items 1.1 to 1.4.

    2.             Performance related contingencies

Report contingent liabilities that involve an irrevocable obligation to pay a third party in the event that a counterparty fails to fulfil or perform a contractual non-monetary obligation, such as delivery of goods by a specified date, etc (i.e. the risk of loss depends on a future event that is not directly related to the creditworthiness of the counterparty involved). Include:

    * issue of performance bonds;

    * bid bonds;

    * warranties;

    * indemnities; and

    * standby letters of credit in relation to a non-monetary obligation of a counterparty under a particular transaction.

    3.             Trade-related contingencies

This is the value, as at the relevant date, of any potential credit exposures arising from trade-related contingencies. A trade-related contingency is a contingent (off-balance sheet) liability arising from a trade-related obligation that is secured against an underlying shipment of goods for both issuing and confirming parties. This includes but is not limited to: documentary letters of credit issued; acceptances on trade bills; shipping guarantees issued; and any other trade-related contingencies.

    4.             Sale and repurchase agreements

This is the value, as at the relevant date, of any potential credit exposures arising from sale and repurchase agreements (also known as 'repos'). Sale and repurchase agreements represent arrangements whereby an entity sells a loan, security or other asset to another party with a commitment to repurchase the asset at an agreed price on an agreed future date.

    5.             Assets sold with recourse

This is the value, as at the relevant date, of any potential credit exposures arising from assets sold with recourse. Assets sold with recourse are asset sales (to the extent that such assets are not included on-balance sheet) by an entity where the holder of the asset is entitled to 'put' the asset back to the entity within an agreed period or under certain prescribed circumstances (e.g. deterioration in the value or credit quality of the asset concerned).

    6.             Forward asset purchases

This is the value, as at the relevant date, of any potential credit exposures arising from forward asset purchases deemed non-market-related off-balance sheet transactions. A forward asset purchase is a commitment to purchase at a specified 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