Label: |
Off-Balance Sheet Exposures - Market Related |
Concept Guidance: |
This is the credit equivalent amount, as at the relevant date, of market-related off-balance sheet exposures, as determined in accordance with Prudential Standard APS 221.This includes all exposures arising from off-balance sheet market related contracts and is to be reported on a net basis, meaning net of the following exposures: - exposures to the extent that they are secured by cash deposits (subject to satisfying the criteria set out in Prudential Standard APS 112; - exposures to the extent that they are guaranteed by, or secured against securities issued by, governments or central banks (subject to satisfying the conditions set out in APS 112); - exposures arising in the course of settlement of market-related contracts; and - exposures to the extent that they have been written off or specifically provided for.Netting by novation and close-out netting are permissible for market related contracts provided all the requirements set out in the prudential standards for bilateral netting are met. Multilateral netting and netting of exposures against offsetting positions held by a group of related counterparties are not recognised. Off-balance sheet refers to assets or liabilities that are not recognised or recorded on the statement of financial position of the reporting party because they do not satisfy the asset or liability accounting recognition requirements
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