RBNZ published a summary of the report on assessment of ANZ Bank New Zealand Limited's (ANZ NZ) compliance with capital adequacy requirements of RBNZ. The report, which is prepared by Deloitte, assesses the compliance of ANZ NZ with the capital adequacy requirements. The report identified some of instances of non-compliance indicating that historically there was insufficient rigor around the processes of ANZ NZ to ensure compliance. These instances of non-compliance are related to internal models for the calculation of regulatory capital and maintaining a compendium of approved models with RBNZ.
RBNZ is working with ANZ NZ to gain assurance that the areas of historical non-compliance with the capital adequacy requirements are being addressed. The findings of the report have been discussed with ANZ, which has been forthcoming in its readiness to address this issue. In June 2019, RBNZ had requested two reports from ANZ NZ under section 95 of the RBNZ Act 1989. ANZ NZ had engaged Deloitte, with the approval of RBNZ as per section 95, to prepare the reports. The first report, on the Director Attestation and Assurance framework of ANZ, was published in December 2019. As a result of the first report, RBNZ had issued a further section 95 notice requiring an external party to confirm by mid-2021 that ANZ has implemented all of the recommendations. Consequently, this latest section 95 report assessed the compliance of ANZ NZ with the capital adequacy requirements.
Keywords: Asia Pacific, New Zealand, Banking, Capital Adequacy, Operational Risk, Regulatory Capital, Internal Models, Compliance Risk, ANZ, RBNZ
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.
HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.
EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).
BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.
FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.
The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.