CTHRepealedLegislation
Banking (prudential standard) determination No. 5 of 2006 - Prudential Standard APS 112 - Capital Adequacy: Credit Risk
Authority and applicationAuthority and application
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Authority and application
- This Prudential Standard, made under section 11AF of the Banking Act 1959 (the Act), applies to all authorised deposit-taking institutions (ADIs) authorised under the Act. The Guidance Notes AGN 112.1 Risk-Weighted On-Balance Sheet Credit Exposures (AGN 112.1), AGN 112.2 Risk-Weighted Off-balance Sheet Credit Exposures (AGN 112.2), AGN 112.3 Netting (AGN 112.3) and AGN 112.4 Treatment of Credit Derivatives in the Banking Book (AGN 112.4) form part of this Prudential Standard.
- The procedures and requirements set out in this Prudential Standard and the guidance notes attaching to it for calculating an ADI’s risk-weighted on- and off-balance sheet credit exposures for capital adequacy purposes are applicable to all locally incorporated ADIs[1] on both a stand-alone and consolidated group basis. Reference to “an ADI” or “ADIs” includes an ADI on a stand-alone basis and the consolidated ADI group.