2022-05-17

Bank Capital Review - summarised

The Reserve Bank of New Zealand proposes to materially increase minimum capital requirements for banks to reduce the likelihood of financial failure. The regulator aims to almost double the required high-quality capital, representing an estimated 20 to 60 percent increase for most institutions. This adjustment is designed to enhance systemic resilience and protect depositors, with expected minimal impact on borrowing costs for customers.

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New Zealand

Reserve Bank of New Zealand

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