MS ORR: Dated 7 January 2011. THE COMMISSIONER: 7 January BAB.5024.0001.1708, exhibit 4.127. ’11, EXHIBIT #4.127 LETTER APRA TO RURAL BANK LIMITED DATED 07/01/2011 (BAB.5024.0001.1708) THE COMMISSIONER: Is that a point at which MS ORR: Just before we break, if you wouldn’t mind, Commissioner. THE COMMISSIONER: No, of course not. MS ORR: Following receipt of that report in February 2011, Bank started querying whether it might have systemic issues in respect of loan management. Do you agree with that?Through the Taso Corolis report, yes. Mr Corolis’ report. So by this time a further 156 customers had been downgraded by three or more credit grades in the previous year?Yes. And there was then a meeting of the board credit committee on 2 February 2011 that was the genesis of Mr Corolis’ work?Yes. I will come to that meeting the break, if the Commission pleases. THE COMMISSIONER: Yes. 2 pm. ADJOURNED [1.01 pm] RESUMED [2.00 pm] THE COMMISSIONER: Yes, Ms Orr. MS ORR: Ms Gartmann, before the I had asked you some questions about February 2011, when Rural Bank was starting to query whether it had systemic issues in relation to loan management. Could I ask you to look at exhibit 7 to your statement, BAB.5022.0004.0005. These are minutes of a board credit committee meeting on 2 February 2011. And do we see there, at the bottom of the page do – you have that there, Ms Gartmann?I have on the screen, yes.
MS ORR: Dated 7 January 2011. THE COMMISSIONER: 7 January ’11, BAB.5024.0001.1708, exhibit 4.127. EXHIBIT #4.127 LETTER APRA TO RURAL BANK LIMITED DATED 07/01/2011 (BAB.5024.0001.1708) THE COMMISSIONER: Is that a point at which MS ORR: Just before we break, if you wouldn’t mind, Commissioner. THE COMMISSIONER: No, of course not. MS ORR: Following receipt of that report in February 2011, Bank started querying whether it might have systemic issues in respect of loan management. Do you agree with that?Through the Taso Corolis report, yes. Mr Corolis’ report. So by this time a further 156 customers had been downgraded by three or more credit grades in the previous year?Yes. And there was then a meeting of the board credit committee on 2 February 2011 that was the genesis of Mr Corolis’ work?Yes. I will come to that meeting the break, if the Commission pleases. THE COMMISSIONER: Yes. 2 pm. ADJOURNED [1.01 pm] RESUMED [2.00 pm] THE COMMISSIONER: Yes, Ms Orr. MS ORR: Ms Gartmann, before the I had asked you some questions about February 2011, when Rural Bank was starting to query whether it had systemic issues in relation to loan management. Could I ask you to look at exhibit 7 to your statement, BAB.5022.0004.0005. These are minutes of a board credit committee meeting on 2 February 2011. And do we see there, at the bottom of the page – do you have that there, Ms Gartmann?I have on the screen, yes.
transcript-2-july-2018.docx