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Financial Sector (Collection of Data) (reporting standard) determination No. 74 of 2023
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| LMI Concentration Risk Charge | The LMI Concentration Risk Charge represents the net loss from the application of a prescribed three-year economic downturn scenario to any lenders mortgage insurance business. The determination of the LMI Concentration Risk Charge is based on the formulae and requirements set out in GPS 116.This is a derived item and is calculated as the greater of:total of adjusted PML multiplied by 10%; orthe sum of PML net of reinsurance and adjustments to LMI Concentration Risk Charge as approved by APRA less net premium liability deduction. |
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