Regulatory Alerts2024-03-13
Proportionality Framework for Developing Standards Under the Deposit Takers Act
The Reserve Bank of New Zealand issued this framework to operationalize the proportionality principle when developing prudential standards for deposit takers under the Deposit Takers Act 2023. It categorizes locally incorporated entities into three groups based on total assets to calibrate regulatory strength and comprehensiveness according to systemic importance and risk profiles. The document outlines transition arrangements for group reclassification, permits firm-specific variations or voluntary opt-in requirements, and mandates periodic reviews to maintain alignment with sector growth and financial stability objectives.
Share