Regulatory Alerts2022-05-17
Summary of submissions and final implementation decisions on bank capital adequacy for housing loans and BS19, BS2A, BS2B revisions
The Reserve Bank of New Zealand finalized revisions to banking capital adequacy requirements for residential mortgages, aligning loan-to-value ratio calculations and formalizing internal models approval processes. The regulator delayed the implementation of rules reclassifying loans for borrowers with more than five properties until December 2014 to address technical concerns raised by stakeholders. Additionally, the document confirms consequential amendments to BS19, BS2A, and BS2B to reflect the Financial Reporting Act 2013 and clarifies property valuation policy requirements.
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