Regulatory Alerts2022-02-27
Added · Updated
Requirements for domestic systemically important banks
The Reserve Bank of New Zealand mandates that four major banks—ANZ, BNZ, ASB, and Westpac—are designated as domestic systemically important banks (D-SIBs) due to their critical role in the highly concentrated national financial system. These institutions must maintain an additional Common Equity Tier 1 capital buffer equal to 2% of their total risk-weighted assets to enhance loss-absorbency. The regulatory requirement is being phased in, with the first 1% effective from July 1, 2022, and the remaining 1% taking effect on July 1, 2023.
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