Regulatory Alerts2022-05-17
Added · Updated
Capital Adequacy Framework (Internal Models Based Approach)
The Reserve Bank of New Zealand issued document BS2B to establish the methodology for locally incorporated registered banks accredited to use internal models for calculating capital ratio requirements. The framework defines total regulatory capital as the sum of Common Equity Tier 1, Additional Tier 1, and Tier 2 capital, specifying strict eligibility criteria and regulatory adjustments for each category. It further mandates the use of the Internal Ratings-Based approach for credit risk and outlines requirements for market risk, operational risk, and the consolidation of banking groups.
More like this from RBNZ
RBNZ published 6 documents in the last 30 days. We email you each new one the day it's published.
Topics
Share