CTHRepealedLegislation
APRA transitional prudential standards
21Redraw facilities that allow redraw only of advance payments, should be assigned a credit conversion factor of 0%.
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21 Redraw facilities that allow redraw only of advance payments, should be assigned a credit conversion factor of 0%.
22 This includes any commitment, that can only be unconditionally revoked with notice, where there is not a clear expiry date within one year.
23 Provided the commitment can only be rolled over or extended after a full credit review is done and there is no presumption or impression conveyed to the client that an approval of a roll over or extension will be a formality. Where this test is not met the commitment will receive a 50 per cent risk weight.