Regulatory Alerts2022-05-17
Non-Bank Deposit Takers Consultation Document: Proposed Capital Ratios and Related Party Exposures Regulations
The Reserve Bank of New Zealand invites submissions on draft regulations establishing prudential capital ratios and limits on related party exposures for non-bank deposit takers. The proposed rules introduce revised risk weights for various loan categories, extend the definition of related parties to include borrowing group members and sister entities, and mandate specific governance requirements such as independent directors. These regulations, intended to commence in September 2010, aim to promote financial system soundness while minimizing unnecessary compliance costs for the sector.
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