Regulatory Alerts2022-02-27
Memorandum on trans-Tasman banking supervision regulation and crisis management
Reserve Bank of New Zealand Governor Alan Bollard issued this memorandum to provide talking points for Minister Michael Cullen regarding the enhanced home-host banking supervision model for New Zealand and Australia. The document argues against joint supervision models, emphasizing that New Zealand must retain independent regulatory and crisis management powers due to the high proportion of foreign-owned banks in its system. It outlines specific benefits of the proposed framework, including coordinated crisis resolution, aligned disclosure requirements, and reduced compliance costs for Australian banks operating in New Zealand.
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