2022-06-30

Added · Updated

Capital requirements for banks in New Zealand

The Reserve Bank of New Zealand outlines the capital adequacy framework for registered banks, specifying minimum capital ratios and qualifying capital definitions. The 2025 Review of key capital settings reduces scheduled increases in capital requirements through 2028, lowering Tier 1 and total capital ratios while removing Additional Tier 1 instruments. Current rules mandate specific Common Equity Tier 1 buffers and distribution restrictions for Domestic-Systemically Important Banks, with full implementation of the Deposit Takers Act 2023 scheduled for 2028.

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New Zealand

Reserve Bank of New Zealand

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