Regulatory Alerts2021-09-29
Thematic review of compliance with liquidity policy
The Reserve Bank of New Zealand conducted its first thematic review of compliance with the Liquidity Policy to assess how locally incorporated banks manage liquidity risk. The review found that while all banks maintained liquidity ratios above regulatory minimums, there were widespread weaknesses in internal risk management frameworks, model governance, and system capabilities. The Reserve Bank has required the largest banks to develop remediation plans and mandated self-assessments for all participants to address identified non-compliance and improve industry standards.
Share