From: Subject: Andy Wood Monday, 8 December 2008 3:13 p.m.

From:
To:
Cc:
Subject:
Attachments:
Andy Wood
Monday, 8 December 2008 3:13 p.m.
'Brian McCulloch'
David Williams
RE: Wholesale: South Canterbury Finance
image001.jpg; image002.jpg
The issue is around capital sufficíency. Applicatíon crítería 4.1c requíres applícants to hold a"suitable Ieve1 of capital
above regulatory mínima" . Of course there ís no regulatory miníma for non banks at thís stage. So how do we
assess sufficíency? Whí1e we are developíng a capital framework for non banks we cannot equítably use this right
now.
My understanding is that Davíd Williams asked SCF (Iast week?) to assess its own balance sheet ín terms of the
standard Basle 11 capítal adequacy framework. This should give us a capítal adequacy ratio (e.g 6%) that wí11 be
comparable to the maínstream banks and should enable us to form a víew on the appropríateness of SCF's capital
Ieve1 for the w'saie gtee.
I am not aware whether SCF have got back to us yet. Davíd: can you update us please.
Andy
From: Brian McCulloch [maiito:[email protected]]
Sent: Monday, 8 December 2008 2:56 p.m.
To: Andy Wood
Subject: Wholesale: South Canterbur
y Finance
Andy
What poínt are you at with SCF's eligibílity for the wholesale scheme, and when wi11 that be able to be relayed to
them? I was under the understanding that there were some concerns Iast week that they would be unlikely to meet
the Bank's prudentíal crítería, but that they weren't aware of thís yet.
Brian Mc
Dr Brian McCulloch Director I New Zealand Treasury
Phone +64 4 917 6077
y.govt.nz
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From: Graeme Brown [mailto:[email protected]]
Sent: Monday, 8 December 2008 2:22 p.m.
To: Brian McCulloch; David Williams; Michael Reddell
Cc: Blair Sutherland
Subject:
Hi Brian/David/Míchael
Can we arrange a conference ca11 either this afternoon or tomorrow am to discuss a potential
wholesale bond that we are planning to fa11 within the wholesale funding guarantee facility?
Regards
1
Graeme Brown Chief Financial Of-Ficer
South Canterbury Finance Lïmïted PO Box 125, Timaru 7940
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03 687 9668
03 684 9550
[email protected]
www.scf.co.nz
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MV
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