Regulatory Alerts2022-05-17
Capital Review Consultation on Capital Ratios and Output Floor
The Reserve Bank of New Zealand issues a consultation paper seeking decisions on the calibration of the output floor and IRB scalar to close the gap between internal models and standardized approaches. The document proposes specific options for the Countercyclical Capital Buffer, Escalating Supervisory Response mechanisms, and minimum leverage ratio requirements to ensure banking stability. It outlines a detailed transition timeline requiring final decisions by mid-2019 with new capital ratios taking effect in early 2020.
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