Regulatory Alerts2022-05-17
PSD Capital Review: A Tractable Approach to Supervisory Philosophy and Resourcing
The Reserve Bank of New Zealand's Prudential Supervision Division proposes a revised supervisory model that prioritizes regulatory philosophy and risk-based resource allocation over immediate structural changes. The document outlines enhancements to the three-pillar framework, including increased verification, stronger enforcement tools, and simplified capital settings to better align incentives. It further details a staged implementation plan requiring a net increase of 10 to 19 staff to support the transition and achieve a steady-state operational capacity.
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