Deposit Takers Act 2023 Regulatory Framework and Standards

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Deposit Takers Act

Find out more about the new regulatory environment under the Deposit Takers Act 2023.

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Why we are creating a single regulatory regime

Under the Deposit Takers Act 2023 (DTA), we are bringing all deposit takers under a single, consistent and proportionate regulatory framework.

Currently, we regulate and supervise banks under the Banking (Prudential Supervision) Act 1989. We also regulate and license Non-bank Deposit Takers (NBDTs) under the Non-bank Deposit Takers Act 2013 and work with the trustee companies that supervise them. From 2028, it is intended that both Acts will be superseded by the DTA.

Under the DTA, prudential regulation and supervision applies to entities that are in the business of borrowing and lending unless they are excluded from the regime. This includes banks, credit unions, building societies and finance companies.

Proportionality Framework

In March 2024, we published the first statutory document under the DTA – the Proportionality Framework. The Proportionality Framework sets out how we take a proportionate approach when developing prudential standards for licensed deposit takers under the DTA. You can find the Proportionality Framework and related consultation materials below.

Rather than taking a ‘one-size-fits-all’ approach to prudential regulation, we consider differences in the deposit-taking sector. This includes the size and nature of the business. We also balance the costs and benefits of regulation with different deposit takers. This means the public can benefit from a safe, sound and stable deposit-taking sector and one that can be diverse, innovative and inclusive.

To develop prudential standards, the Proportionality Framework groups locally-incorporated licensed deposit takers into 3 groups based on their total asset size, with a fourth group for overseas licensed deposit takers (branches).

Triangle showing Proportionality Framework applied to prudential standards under the Deposit Takers Act.

Top line: Prudential standards

Second line: Proportionality Framework

Third line: Deposit Takers Act

Proportionality Framework for developing prudential standards (PDF, 332KB)

You can find consultation information, submissions and our responses on our consultation page .

DCS Transitional Standard

The Deposit Takers (Depositor Compensation Scheme Transitional Provisions) Standard 2025 comes into force on 1 July 2025. It sets out how deposit takers should gather alternate bank details from depositors in the event of a failure, so that DCS payments can be made as quickly as possible. We published the Transitional Standard on 21 May 2025.

DCS Transitional Standard (PDF, 426KB).

Guidance on the DCS Transitional Standard (PDF, 419KB)

DCS protected deposit hierarchy

We have published a Depositor Compensation Scheme (DCS) protected deposit hierarchy guidance paper. The purpose of this paper is to indicate how we might exercise our discretion to prioritise different types of deposits for DCS compensation under section 228 of the DTA.

Read the guidance paper (PDF, 205KB)

We consulted on this policy between 13 February 2025 and 25 March 2025 and several changes were made to the final policy as a result of the submissions we received. We plan to publish the submissions soon.

Prudential standards

Prudential standards are the secondary legislation provided for under the DTA. The standards will replace over 800 pages of the banking handbook, conditions of registration, Orders in Council and NBDT regulations. Comprising core and non-core standards, they set the prudential requirements for deposit takers with the aim of protecting and promoting the stability of the financial system. The currently anticipated standards and their approximate timelines can be found on our timeline page.

DTA timeline

Competition Assessment Guidelines for Prudential Policy

Competition is a key principle we must take into account when making prudential policy decisions under the DTA.

In October 2025, we published the Competition Assessment Guidelines for Prudential Policy. The guidelines outline a process for how we consider competition and help ensure we factor competition into our policy analysis from the outset.

Competition Assessment Guidelines for Prudential Policy (PDF, 697KB)

Crisis management of deposit takers

Crisis management is how the Reserve Bank, deposit takers and other relevant stakeholders respond to avoid significant damage to the financial system. The responses cover both recovery and resolution.

The DTA modernises New Zealand’s crisis management regime for deposit takers in line with international best practice.

We are implementing a new crisis management regime in the DTA. It includes updating our existing policies and development of new standards on crisis management.

Between 2024 – 2028, we will be consulting in stages on our ongoing policy development.

Read more about our approach to implementing the new crisis management regime and consultation timeline .