Regulatory Alerts2022-05-17
Reserve Bank of New Zealand Consultation on Significant Acquisitions Policy for Banks
The Reserve Bank of New Zealand proposes a new condition of registration requiring locally incorporated banks to obtain a notice of non-objection before undertaking significant acquisitions. This policy aims to mitigate risks to the financial system by allowing the regulator to assess potential impacts prior to transaction completion, aligning with Basel Core Principle 5. The proposal defines significant acquisitions through qualitative and quantitative thresholds, such as transactions exceeding 25% of tier one capital, and seeks stakeholder feedback on the implementation details.
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