2025-05-05
The Reserve Bank of New Zealand has issued terms of reference for a 2025 review to assess whether prudential capital requirements for deposit takers are set at appropriate levels to support financial stability. The evidence-based review will evaluate granular risk weights, international comparisons, and the proportionality of capital ratios while consulting publicly and engaging independent international experts. The Reserve Bank intends to recommend final decisions to the Board by year-end, aiming to implement changes before the Deposit Takers Act 2023 comes into force.