Regulatory Alerts2021-06-16
BS16 Guidance note: Application requirements for recognition of Tier 2 capital instruments
The Reserve Bank of New Zealand issued this guidance note to amend BS16, allowing registered banks to issue Tier 2 capital instruments compliant with the upcoming Banking Prudential Requirements (BPRs) before their October 2021 effective date. Banks must ensure new instruments meet BPR110 standards and follow the BPR120 notification process to receive a non-objection notice, thereby bypassing certain existing Handbook requirements. This temporary framework expires on 30 September 2021, after which the full BPRs will replace the previous capital adequacy rules.
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