Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010

  • This version was replaced on 12 April 2017 to make corrections to regulations 16(1), 17(1), 18(1), 21, and 24(1)(c) under section 25(1)(k) of the Legislation Act 2012.

Reprint as at 1 May 2014

Coat of Arms of New Zealand

Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010

(SR 2010/167)

Anand Satyanand, Governor-General

Order in Council

At Wellington this 21st day of June 2010

Present:
His Excellency the Governor-General in Council

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

These regulations are administered by the Reserve Bank of New Zealand.

Pursuant to sections 24, 33, 36, and 74 of the Non-bank Deposit Takers Act 2013, His Excellency the Governor-General, acting on the advice and with the consent of the Executive Council, and on the advice of the Minister of Finance given in accordance with a recommendation of the Reserve Bank of New Zealand made after consultation in accordance with section 76 and taking into account the principles in section 8 of that Act, makes the following regulations.

Enacting statement: amended, on 1 May 2014, by section 92(2) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Contents

1Title
2Commencement
Part 1
Preliminary provisions
3Interpretation
4Definition of related party [Revoked]
5All calculations to be on consolidated basis if deposit taker is member of borrowing group
Part 2
Requirements relating to credit ratings
6Requirements for credit ratings
Part 3
Requirements relating to maintenance of minimum capital ratio
7Overview
8Trust deed must include minimum capital ratio that deposit taker must maintain
9How to calculate capital ratio
Calculation of capital
10How to calculate capital
Calculation of risk-weighted amount for credit risk
11Calculation of risk-weighted amount for credit risk
12Calculation of risk-weighted amount for on-balance sheet exposures
13Classification of on-balance sheet exposures for purpose of determining applicable risk weight
14When assets may be classified as rated short-term or long-term claim
15How to determine applicable rating grade for purpose of classifying rated claims
16How to determine loan-to-valuation ratio for purpose of classifying residential mortgage loans and certain other loans
17How to determine loan-to-valuation ratio for purpose of classifying property development loans
18How to determine loan-to-valuation ratio for purpose of classifying loans secured over qualifying moveable machinery
19Requirements for transferred loans to be excluded from calculation of risk-weighted amount for on-balance sheet exposures
20Requirements for loans subject to sub-participations to be excluded from calculation of risk-weighted amount for on-balance sheet exposures
Calculation of amount for market risk and operational risk
21How to calculate amount for market risk and operational risk
Part 4
Restrictions on related party exposures
22Overview
23Trust deed must include maximum limit on aggregate related party exposures of no more than 15% of capital
24How to calculate maximum limit ratio
25Identifying related party exposures
26Measuring related party exposures
27Measuring related party exposures that are market-related contracts
Part 5
Revocation
28Revocation
Schedule
Tables 1 to 3
Gazette Information
Reprint notes