Regulatory Alerts2022-05-17
BS16 - Application for capital recognition or repayment: material to be provided to the Reserve Bank WEB
The Reserve Bank of New Zealand issues BS16 to define the application process and documentation requirements for New Zealand-incorporated registered banks seeking recognition of Additional Tier 1 or Tier 2 capital instruments. The document mandates that banks obtain a notice of non-objection before including such instruments in regulatory capital, detailing specific submission steps including initial and final applications, legal opinions, and self-assessments. It further establishes strict notification obligations and approval procedures for the repayment, repurchase, or replacement of capital instruments to ensure ongoing compliance with capital adequacy standards.
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