Regulatory Alerts2022-02-27
Open Bank Resolution Policy
The Reserve Bank of New Zealand has established the Open Bank Resolution (OBR) policy to manage bank failures by re-opening affected institutions under statutory management the next business day. This framework prioritizes rapid access to customer funds and critical banking services while ensuring that losses are absorbed by shareholders and creditors rather than taxpayers. The policy applies to major locally incorporated banks with over $1 billion in retail deposits and provides a structured alternative to liquidation or government bailouts.
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