Regulatory Alerts2022-07-14
Reserve Bank of New Zealand Liquidity Policy BS13 July 2022
The Reserve Bank of New Zealand issued Liquidity Policy BS13 to establish prudential requirements for registered banks to manage liquidity risk and maintain financial system stability. The policy mandates compliance with three quantitative ratios: a one-week mismatch ratio, a one-month mismatch ratio, and a one-year core funding ratio, alongside specific reporting and disclosure obligations. Standard minimum thresholds are set at zero percent for the mismatch ratios and 65 percent for the core funding ratio, with provisions for variations based on bank type and jurisdiction.
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