Regulatory Alerts2022-05-17
Basel III Implementation in New Zealand - Update
The Reserve Bank of New Zealand has issued an update on its Basel III implementation, outlining final decisions on capital standards, buffers, and transitional arrangements to assist local banks with capital planning. The regulator will adopt nearly all Basel III standards with notable departures including the rejection of a mandatory leverage ratio and earlier implementation of conservation and countercyclical buffers, while tightening rules on Additional Tier 1 instrument callability and loss absorbency triggers. A phased de-recognition schedule for non-qualifying capital instruments will run from 2014 to 2018, with proposed handbook amendments and a full consultation response expected in July.
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