Regulatory Alerts2026-02-26
2025 Review of Deposit Taker Capital Settings: Summary of Submissions and Policy Decisions
The Reserve Bank of New Zealand has eased prudential capital requirements for deposit takers following a targeted 2025 review that recalibrated its risk appetite to support economic prosperity. The policy changes include the removal of Additional Tier 1 capital instruments, the introduction of loss absorbing capacity requirements for the largest institutions, and the implementation of more granular standardised risk weights. These revised settings are scheduled for phased implementation starting in October 2026, with full compliance under the new Capital Standard required by December 2028.
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