Regulatory Alerts2022-05-17
New Zealand Macro-Prudential Policy Framework Final Policy Position
The Reserve Bank of New Zealand establishes a final macro-prudential policy framework to enhance domestic financial system resilience and counter instability arising from credit, asset price, or liquidity shocks. The policy mandates four primary regulatory instruments—the countercyclical capital buffer, core funding ratio adjustments, sectoral capital requirements, and loan-to-value ratio restrictions—which will be deployed discretionarily based on ongoing systemic risk assessments. Governance and implementation procedures are formalized through a Memorandum of Understanding with the Minister of Finance and detailed updates to banking supervision handbooks and registration conditions.
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