Regulatory Alerts2023-09-30
BPR120 Capital Adequacy Process Requirements
The Reserve Bank of New Zealand issued BPR120 to establish process requirements for registered banks' compliance with minimum capital adequacy standards. The document mandates specific notification procedures and legal sign-offs for issuing or redeeming AT1, Tier 2, and mutual capital instruments, while restricting certain capital transactions to maintain regulatory buffers. It further outlines supervisory responses to capital shortfalls and sets accreditation requirements for internal rating-based models used by IRB banks.
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