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Average values for maximum debt level or minimum capital level

You must calculate average values for particular matters (for example, assets, liabilities, debt and equity capital).

Last updated 8 March 2016

You must calculate average values for particular matters (for example, assets, liabilities, debt and equity capital) in order to determine:

  • maximum debt level for non-ADI entities
  • minimum capital level for ADI entities.

This section explains how to establish a value and an average value for a matter, including:

Determining the value of assets, debt capital, other liabilities, equity capital and other matters.

To ensure the integrity of the values used, we have the discretion to substitute an appropriate value.

There are 3 methods a financial entity (non-ADI) may use to determine its average values.

QC48204