Regulatory Alerts2026-06-17
Reserve Bank of New Zealand Proportionality Framework for Developing Standards Under the Deposit Takers Act
The Reserve Bank of New Zealand issued this framework to operationalize the proportionality principle required by the Deposit Takers Act 2023 when developing prudential standards. It establishes a three-tier grouping system for locally incorporated deposit takers based on total assets, ranging from systemically important banks to smaller entities, while maintaining a separate category for overseas branches. The document details how the regulator adjusts the strength and comprehensiveness of requirements to balance regulatory costs and benefits, including mechanisms for group variations and smooth transitions as firms grow or restructure.
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