Regulatory Alerts2022-05-17
Review of bank capital adequacy requirements for housing loans (stage two): Proposed policy wording for BS2A and BS2B
The Reserve Bank of New Zealand proposes textual changes to Banking Supervision Handbook documents BS2A and BS2B to harmonize loan-to-value ratio definitions and formalize internal models approval processes. Key revisions include standardizing the calculation of loan amounts by excluding unsecured lending, establishing common property valuation policies, and refining the classification of residential mortgage exposures. Additionally, the document outlines consequential amendments to BS19 and updates to terms referencing the Financial Reporting Act 2013, with a proposed implementation date of 1 July 2014.
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