Regulatory Alerts2022-05-17
Reserve Bank of New Zealand Consultation on Pre-positioning for Open Bank Resolution
The Reserve Bank of New Zealand requires registered banks to pre-position their internal systems to support the Open Bank Resolution policy, which aims to resolve failing banks while maintaining payment system continuity. This consultation seeks submissions on the technical implementation approach, specifically targeting locally incorporated banks with retail funding over $1 billion to ensure they can execute account haircuts and restore liquidity within 24 hours of failure. The regulator proposes a phased implementation process with a deadline for initial responses in June 2011 and expects full operational capability by late 2012.
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