Regulatory Alerts2023-07-09
Joint Industry Submission on Exposure Drafts of BPR110 and BPR120
Nelson Building Society, SBS Bank, and Cooperative Bank submitted joint feedback to the Reserve Bank of New Zealand regarding the Exposure Drafts of BPR110 and BPR120 for incorporating Mutual Capital Instruments into the regulatory capital framework. The Submitters propose structural changes to create a dedicated subpart for these instruments, seek clarification on distribution policies, and recommend amendments to the surplus asset distribution formula upon wind-up. Additionally, they advocate for deleting restrictive requirements regarding currency denomination, governing law, and group member purchases to enhance usability and broaden capital access.
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