Developing the Bank Financial Strength Dashboard

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Our policy work for bank oversight

This page summarises our consultations from 2016 to 2018 on an approach to quarterly prudential disclosures for registered banks via the Bank Financial Strength Dashboard (the Dashboard). The Dashboard is an interactive tool with key risk metrics that can help users judge the financial condition or strength of locally incorporated banks in New Zealand.

Published:

Outcome from consultation

On 29 May 2018, the Bank Financial Strength Dashboard went live with data from Q1 2018. As a result of the Dashboard, the requirement for banks to publish disclosure statements was reduced from four times per year to twice per year. This change took effect 31 March 2018.

The rationale for the dashboard

The dashboard aims to enhance market discipline—a main pillar of our 3-pillar approach to prudential supervision—by making quarterly disclosures available in a more timely manner and more accessible format to facilitate comparisons across banks.

Go to the Bank Financial Strength Dashboard

Timeline of consultation

29 March 2018

We updated the working copies of the disclosure Orders in Council on our main 'Banking Supervision Handbook' page to reflect the changes in disclosure requirements that took effect on 31 March.

We also updated the related handbook documents BS7 and BS7A, and revised a number of pages on our website to remove references to quarterly disclosure statements.

Go to the Banking Supervision Handbook

23 February 2018

Amending Orders in Council were published in the New Zealand Gazette on 22 February 2018 to implement the changes in disclosure needed to coincide with the first Dashboard publication. These amendments took effect on 31 March 2018.

We prepared a regulatory impact statement assessing the combined impact of implementing the Dashboard and removing off-quarter disclosure statements.

In light of feedback we received from the November 2017 consultation, the disclosure changes we made incorporated some updates compared to the version proposed in that consultation.

We published a summary of submissions that provided our responses to key issues raised by submitters. We published the individual submissions received on the consultation on changes to existing bank disclosure requirements, where submitters had given their consent.

14 November 2017

Alongside the implementation work on the Dashboard, we needed to make changes to the existing registered bank disclosure requirements, to take effect at the same time as the Dashboard. These changes included the removal of the requirement for off-quarter disclosure statements.

We consulted on changes to the disclosure Orders in Council, which were made by Amending Orders that took effect 31 March 2018. The proposed changes also included a number of other improvements confirmed during the Regulatory stocktake.

21 September 2017

We first consulted on the Dashboard approach for quarterly disclosures at the end of 2016. We held industry workshops in May and August 2017 to further discuss the main design issues raised by banks during the formal consultation.

The consultation paper outlined the finalised Dashboard approach to quarterly disclosures for locally incorporated banks. It took on board issues raised by stakeholders by making refinements around the timing of publication, measures to ensure data quality and the metrics that would be included in the dashboard.

7 February 2017

We released a summary of submissions on 7 February 2017. It summarised the consultation feedback, provided our response to some key issues raised by submitters and outlined next steps for the dashboard initiative.

23 September 2016

In September 2016, we published a consultation document on the proposed Dashboard approach to quarterly disclosure by locally incorporated banks. The consultation closed on 15 December 2016.

Consultation documents

Older content relating to the dashboard's development can be searched using keywords 'dashboard', 'consultation' and the year.