Regulatory Alerts2025-08-24
Oliver Wyman RBNZ Capital Review - Comparing New Zealand Bank Capital Ratios to International Peers
Commissioned by the Reserve Bank of New Zealand, this Oliver Wyman report benchmarks New Zealand banks' regulatory capital ratios against international peers to support a review of capital settings. The analysis adjusts for national variations in capital definitions and risk-weighted asset calculations, estimating that New Zealand's CET1 ratios would increase by approximately 780 basis points under a standard Basel III framework. Consequently, adjusted New Zealand core capital ratios rank higher than the majority of peer countries, although held capital remains lower than some peers regarding Total Loss-Absorbing Capacity metrics.
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