CTHIn ForceLegislation
Banking (prudential standard) determination No. 2 of 2025
Materiality thresholdsMateriality thresholds
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Materiality thresholds
- Where a guarantee provides for a materiality threshold on payments below which no payment will be made in the event of loss, it is equivalent to a retained first loss position and must be deducted from Common Equity Tier 1 Capital in accordance with APS 111. This deduction will be capped at the amount of capital the ADI would be required to hold against the full value of the underlying exposure.