Regulatory Alerts2022-05-17
Reserve Bank Capital Review Industry Forum
The Reserve Bank of New Zealand proposes increasing Tier 1 capital requirements to 16 percent for systemically important banks and 15 percent for others to enhance financial system soundness. The review introduces an 85 percent output floor for internal models, recalibrates them to align closer to standardized approaches, and rejects contingent convertible bonds in favor of going-concern capital. Implementation is scheduled over a five-year transition period concluding in 2024, with final decisions expected in the third quarter of 2019.
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