Regulatory Alerts2022-05-17
Summary of submissions and policy decision: Dual Registration Policy for Small Foreign Banks
The Reserve Bank of New Zealand issued a policy decision clarifying the criteria for small foreign banks to operate dual-registered branches alongside local subsidiaries. The framework permits this structure for non-systemic banks while imposing restrictions on retail deposit taking and requiring enhanced governance to mitigate risks from non-equivalent home state supervision. This approach balances the need for financial system soundness with the benefits of increased competition and operational efficiency for foreign participants.
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