Regulatory Alerts2022-05-17
Capital Review Principles
The Financial Policy Division of the Reserve Bank of New Zealand proposes principles to guide the upcoming capital review for the Financial Stability Oversight Committee. The document mandates that banks maintain conservative capital levels exceeding private incentives, ensuring availability during crises while maintaining risk sensitivity and regulatory neutrality. It further requires that regulations be tailored to New Zealand's specific economic circumstances and remain practical to administer given the regulator's limited resources.
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