Regulatory stocktake of prudential requirements

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Our policy work for bank oversight

A summary of the regulatory stocktake consultation and our work to implement its findings in 2016.

Published:

Between 2014 and 2015 we conducted a stocktake of the prudential requirements for banks and non-bank deposit takers to identify ways to improve the efficiency, clarity and consistency of these requirements.

Stocktake conclusions

On 18 December 2015, we published the conclusions of the project in two parts:

The summary of submissions and policy decisions on the consultation document on the prudential requirements applying to registered banks.

The summary of feedback from non-bank deposit taker (NBDT) industry bodies and our responses on the NBDT Industry Update.

The stocktake project began in 2014 with the release of terms of reference. It looked at the content and frequency of disclosure statements banks were required to publish.

While we concluded it was important for locally incorporated banks to provide some form of quarterly disclosure, we also concluded they could do so in a more timely and accessible manner, and at a lower cost to them.

The consultation found broad support for most of our specific proposals, such as improving the drafting and layout of the documents that set out prudential requirements for banks.

Submissions were also broadly supportive of a number of technical changes that we proposed for specific prudential requirements. We also received useful feedback on several matters relating to the prudential requirements for non-bank deposit takers (NBDTs).

As a result of the stocktake, we enhanced the transparency of our policy-making process by strengthening the communication around it.

Follow-on implementation work in 2016

Dashboard

In September 2016, we published a consultation document on the proposed Dashboard approach to quarterly disclosure by locally incorporated banks. Submissions closed in December 2016.

See Developing the Bank Financial Strength Dashboard

The dashboard involves publishing key information about locally incorporated banks on our website.

Publishing submissions on consultations

On 22 September 2016, we published a summary of the submissions and feedback received on our consultation paper (released in May 2016), which sought views on changing our current approach to publishing submissions on consultations.

Summary of submissions and final policy decisions on the consultation paper: Review of the default option for the publication of submissions

PDF | 99KB

Consultation paper: Review of the Default Option for Publication of Submissions

PDF | 153KB

As a result of this consultation and the feedback we received, we began publishing individual submissions for all consultations from 22 September 2016, where submitters had given their consent.

Guidelines on AML/CFT

On 27 June 2016, we published an updated version of the Banking Supervision Handbook document 'Guidelines on Anti-Money Laundering and Countering Financing of Terrorism (BS5)'. This followed a consultation with banks on the proposed update. We also published a feedback statement to the consultation.

Guidelines on Anti-Money Laundering and Countering Financing of Terrorism (BS5)

PDF | 70KB

Regulatory stocktake feedback statement

PDF | 142KB

Expert panel

We formed an 'expert panel' of individuals with experience in a range of relevant fields to help test ideas and provide a broader range of perspectives as the regulatory stocktake progressed. The panel met five times between October 2014 and October 2015.

More information

Older consultation documents relating to the regulatory stocktake have been archived and can be searched using key terms 'regulatory stocktake', document type and the year.