Regulatory Alerts2025-12-16
Capital Review FAQs
The Reserve Bank of New Zealand released FAQs accompanying its 2025 Capital Review, which reduces Common Equity Tier 1 capital requirements and introduces Loss Absorbing Capacity for the largest deposit takers. These changes aim to lower funding costs, enhance competition, and align New Zealand’s regulatory framework with Australian Prudential Regulation Authority standards. The Reserve Bank will monitor the impacts on lending and market dynamics, with detailed implementation plans and background materials scheduled for release in February 2026.
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