Regulatory Alerts2022-05-17
Extending Reserve Bank Liquidity Policy BS13 to overseas bank branches
The Reserve Bank of New Zealand proposes extending its BS13 liquidity policy, including one-week and one-month mismatch ratios, to overseas bank branches to ensure adequate local liquid asset holdings. The regulator favors applying the existing BS13 framework rather than the Basel III Liquidity Coverage Ratio to avoid implementation delays and maintain consistency with locally-incorporated banks. The consultation seeks feedback on specific technical adjustments regarding head office funding treatment, committed lines, and interactions with home country supervisors.
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