Regulatory Alerts2022-05-17
Final NBDT Capital Regime Risk Weight Paper
The Reserve Bank of New Zealand issued this paper to define the risk weighting structure for the Non-Bank Deposit Taker capital adequacy regime. It establishes specific risk weights for asset classes including residential mortgages, personal loans, business loans, and property development based on calibrated models and regulatory judgments. The framework differentiates NBDTs from banks by excluding explicit loan commitment charges and adopting a through-the-cycle approach to default risk assessment.
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