Regulatory Alerts2022-05-17
Reserve Bank of New Zealand Revised Corporate Governance Requirements for Registered Banks
The Reserve Bank of New Zealand has issued final revisions to corporate governance requirements for registered banks, primarily through the new Banking Supervision Handbook document BS14. The policy mandates a minimum board size of five, requires a majority of non-executive directors, and relaxes the independence threshold to at least half of the board while maintaining strict criteria for director independence and audit committee composition. These changes follow a consultation process that addressed concerns from wholly-owned subsidiaries regarding shareholder rights and director availability, with a one-year transition period planned for implementation in early 2011.
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