Regulatory Alerts2022-05-17
Regulatory Impact Statement - Capital Requirements for Non-Bank Deposit Takers
The Reserve Bank of New Zealand proposes a new prudential capital adequacy framework for non-bank deposit takers to address inconsistent trustee-based standards and restore depositor confidence. The preferred option implements an amended version of the standardized banking regime that recognizes only tier one capital and applies differentiated risk weights to reflect specific sector risks. Minimum capital requirements are set at 8 percent for rated companies and 10 percent for smaller unrated entities to ensure sufficient loss-absorbing capacity.
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