Regulatory Alerts2022-05-17
Consultation on Related Party and Minimum Capital Ratio Requirements for Non-Bank Deposit Takers
The Reserve Bank of New Zealand proposes new prudential regulations for non-bank deposit takers to enhance financial system soundness and depositor confidence. The framework mandates a maximum 15 percent limit on aggregate related party exposures relative to tier one capital and establishes a minimum capital ratio requirement based solely on tier one capital. These measures aim to simplify compliance while ensuring adequate capital buffers against credit risks and related party abuses.
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