2025-05-05

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2025 Review of key capital settings

The Reserve Bank of New Zealand announced final decisions on 17 December 2025 to reduce key capital requirements for deposit takers, reversing planned increases from the 2017-2019 review. The new framework lowers Tier 1 and total capital ratios across all bank groups, introduces additional loss absorbing capacity requirements for the largest institutions, and removes Additional Tier 1 instruments. Implementation will occur through updated Banking Prudential Requirements in late 2026 and the Deposit Takers Act Capital Standard effective December 2028.

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New Zealand

Reserve Bank of New Zealand

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