Regulatory Alerts2022-05-17
Reserve Bank of New Zealand Feedback Note on Covered Bonds
The Reserve Bank of New Zealand issued this feedback note following its October 2010 consultation on covered bonds, addressing twelve formal submissions. The Bank confirmed a regulatory limit capping covered bond issuance at 10 percent of total assets to manage prudential risks related to asset encumbrance. Additionally, the document outlines the Bank's stance on legislative frameworks, structural requirements, and capital adequacy rules to support the development of a secure covered bond market in New Zealand.
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