Regulatory Alerts2022-05-17
Capital Review - The use of buffers in the Capital Review
The Financial Stability Office (FSO) issued this document to outline the role and potential expansion of capital buffers within New Zealand's banking regulatory framework. It details the functions of the conservation buffer, countercyclical buffer, and domestic systemically important bank requirements while analyzing trade-offs between hard minimum ratios and softer buffer constraints. The paper serves as a preparatory review for the FSO Committee to consider future decisions on buffer implementation and sizing.
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