Westpac Financial Performance Update slide image

Westpac Financial Performance Update

39 | New Zealand regulatory changes Summary of key regulatory changes New Zealand Covered Bond legislation • RBNZ (Covered Bonds) Amendment Act 2013 . • • RBNZ LVR restrictions • October 2013 - Limit 10% >80% LVR . June 2015 Outside Auckland - Limit 15% >80% LVR RBNZ Investor Housing Loans · · Limit 5% >70% LVR on Investor Housing Loans in Auckland Higher RWA for Capital purposes on non-Owner Occupied to be introduced later in 2015 APRA LCR regulations January 2015 100% Liquidity Coverage Ratio for 1 month maturities. Term Deposits must honour contractual Term, or 30 days notice for economic break • . . Legislation passed December 2013 • RBNZ (Covered Bonds) Amendment Act 2013 Programme must be registered with RBNZ • WNZL first New Zealand bank registered - April 2014 Non compliance, RBNZ can compel issuer to take immediate corrective action Cover Pool (SPV) is not an associated, related or subsidiary company under Statutory Management regime . Cover Pool Monitor Independent Auditor (PwC) • Verify all calculations Moment in time observation PRIVATE & CONFIDENTIAL
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