Dear Darren,

 

Official information request for Generally Accepted Accounting Principles.

Thank you for your official information request of 28 July 2022 for the
following:

 

1. When a bank gives loan to someone it goes into both the asset and
liability column of a banks financial books;

2. When the loan is paid in full, the bank removes it from the asset books
and the interest is placed into the income column of the banks financial
books;

3. The loan still remains on the liability side of the books;

4. The bank at some stage the move this liability into the income column
of their financial books, as it can only have so many liabilities;

 

 

We will endeavour to respond to your request as soon as possible and in
any event no later than 25 August 2022, being 20 working days after the
day of your request. If we are unable to respond to your request by then,
we will notify you of an extension of that timeframe.

 

Charges for providing official information and publishing responses

The Official Information Act allows charges to be imposed for the
preparation of information that we send in response to requests. The
Reserve Bank is resourced to meet disclosure obligations for a reasonable
level of requests and generally will not impose charges for small, simple
or infrequent requests. Where the request is for information that requires
substantial collation, research and preparation work, and is chargeable,
we will work with you first to refine the request to a smaller scale or
scope that is less likely to involve charges.

 

Responses to official information requests are published on the Reserve
Bank’s website. We will confirm in our decision letter to you whether we
intend to publish our response to your request.

 

Further information about charges and publishing responses is available on
our website at
[1]www.rbnz.govt.nz/research-and-publications/official-information-requests.

 

Yours sincerely,

Marie Ellen

Communications and Engagement Coordinator

Government and Industry Relations

Reserve Bank of New Zealand – [3]Text Description automatically generated
Te Pūtea Matua
[4]cid:image010.png@01D7593A.4FF7BCD0   
2 The Terrace, Wellington
6011. PO Box 2498, Wellington
6140

T (04) 471 3847   E
[email address] 

W [2]rbnz.govt.nz

 

 

 

From: darren-edward <[5][FOI #20056 email]>
Sent: Thursday, 28 July 2022 1:26 pm
To: RBNZ Info <[6][RBNZ request email]>
Subject: Official Information request - GAAP

 

Dear Reserve Bank of New Zealand,

i am looking for clarification, please note i am just a common man and
looking for plain English without any confusion or legalese type language
designed for persons and not the common man or woman;

i am of the understanding because debt can be sold, therefor its also
considered to be classed as money by financial institutions and that the
financial institutions use Generally Accepted Accounting Principles
(GAAP);

I'd like a simple answer to the following,

1. When a bank gives loan to someone it goes into both the asset and
liability column of a banks financial books;

2. When the loan is paid in full, the bank removes it from the asset books
and the interest is placed into the income column of the banks financial
books;

3. The loan still remains on the liability side of the books;

4. The bank at some stage the move this liability into the income column
of their financial books, as it can only have so many liabilities;

please feel free to correct me in anyways, if what i am saying is in
anyway incorrect i ask that you please clarify in anyways needed, as i
stated i am but a simple man trying to figure out something that is more
complicated than my current understanding

Yours faithfully,

darren-edward

-------------------------------------------------------------------

This is an Official Information request made via the FYI website.

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[7][FOI #20056 email]

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Good afternoon Darren

 

Please find attached our response to your recent Official Information Act
request.

 

Kind regards

 

Adrienne Martin

Manager Government and Industry Relations

Reserve Bank of New Zealand –
Te Pūtea Matua [2]cid:image019.png@01D75622.D76B9DF0

2 The Terrace, Wellington  
6011. PO Box 2498, Wellington
6140 [3][IMG] [4][IMG] [5][IMG] [6][IMG] [7][IMG]

W [1]rbnz.govt.nz

 

 

show quoted sections

 

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