Regulatory Alerts2022-05-17
Draft revisions to BS1 re LVR framework, 2013
The Reserve Bank of New Zealand issues Statement of Principles BS1 to define the regulatory framework for bank registration and prudential supervision under the Reserve Bank of New Zealand Act 1989. The document mandates that systemically important banks with New Zealand liabilities exceeding NZD 15 billion must incorporate locally, while retail deposit takers face strict requirements regarding home jurisdiction disclosure and creditor priority laws. It further establishes capital thresholds, ownership structure assessments, and crisis management protocols to maintain financial system soundness and minimize damage from potential bank failures.
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