Regulatory Alerts2022-05-17
Reserve Bank of New Zealand Consultation on Dual Registration Policy for Small Foreign Banks
The Reserve Bank of New Zealand proposes a framework to assess applications from small, non-systemic foreign banks to simultaneously operate a branch and a locally incorporated subsidiary. The policy requires applicants to demonstrate that dual registration provides net benefits to New Zealand that outweigh the prudential risks, such as reduced supervisory control over branch operations. To mitigate these risks, the Reserve Bank may impose specific restrictions on branch activities, governance, and funding sources as conditions of registration.
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