Regulatory Alerts2022-02-27
Liquidity policy for banks
The Reserve Bank of New Zealand imposes minimum prudential standards on registered banks to manage liquidity risk arising from maturity transformation. The policy mandates compliance with one-week and one-month mismatch ratios, a core funding ratio currently set at 75%, and the maintenance of robust internal risk management frameworks. Banks are required to submit monthly reports detailing their liquidity positions, including cash flow projections and the composition of their liquid assets.
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