2022-05-17

Capital review - Capital buffering

The document outlines the design of capital buffers, specifying a 16% Tier 1 capital ratio composed of a 7.5% conservation buffer and a 2.5% countercyclical buffer. It details supervisory actions and dividend restriction options ranging from graduated to hard limits based on capital adequacy levels. A five-year transition period is established for implementation, with specific annual targets for conservation and countercyclical buffers from 2019 to 2024.

Reserve Bank of New Zealand logo

New Zealand

Reserve Bank of New Zealand

Click to view full text