Regulatory Alerts2022-05-17
Submission on Capital Review
The Reserve Bank of New Zealand received submissions regarding proposed changes to minimum capital requirements for banks. The Banking Ombudsman Scheme supported the policy intent to mitigate risks during economic downturns but urged consideration of potential cost pass-throughs to customers and impacts on credit access. Other contributors, including an academic and a market specialist, generally supported higher capital ratios while proposing alternative deposit protection mechanisms such as treating transaction funds as sovereign money.
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