Regulatory Alerts2022-05-17
Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010
The Governor-General of New Zealand, acting on the advice of the Executive Council and the Reserve Bank of New Zealand, issued these regulations to establish prudential standards for deposit takers under the Reserve Bank of New Zealand Act 1989. The regulations mandate minimum capital ratios of 8% for rated entities and 10% for unrated ones, while defining precise methodologies for calculating capital, credit risk, market risk, and operational risk. Additionally, the rules restrict aggregate related party exposures to a maximum of 15% of capital and require all calculations for borrowing groups to be performed on a consolidated basis.
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