Regulatory Alerts2022-05-17
Added · Updated
Capital Adequacy Framework (Standardised Approach) - BS2A
The Reserve Bank of New Zealand's Prudential Supervision Department issued this document (BS2A) to outline the methodology for locally incorporated registered banks using the standardised approach to calculate capital requirements. It defines total regulatory capital, comprising Common Equity Tier 1, Additional Tier 1, and Tier 2 capital, along with detailed criteria for instrument classification, loss absorbency, and associated regulatory adjustments. The framework also specifies requirements for capital ratios, credit risk, credit risk mitigation, funds management, securitisation, insurance business, loan transfers, operational risk, and market risk exposure.
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