Featured Product

    RBNZ Outlines Next Steps to Policy for Residential Mortgage Obligation

    August 12, 2019

    RBNZ published an update on the proposal to introduce a high-grade residential mortgage-backed securities (RMBS) framework for New Zealand through the introduction of Residential Mortgage Obligations. The update includes a summary of the key issues remaining with regard to the Residential Mortgage Obligations policy and outlines the next steps to a policy for simple, transparent, and comparable mortgage bonds. The update (Appendix A) also presents a summary of the responses to questions that RBNZ posed in the second consultation on residential mortgage obligations standard. In addition, it summarizes (in Appendix B) the comments and markups received on the draft terms and conditions of the residential mortgage framework. RBNZ aims to finalize the policy framework by the end of 2019.

    The update summarizes responses received to the second consultation on the Residential Mortgage Obligations standard, which was launched in November 2018 and ended in March 2019. The final standard aims to reduce contingency risks for RBNZ as a lender of last resort, ensuring financial intermediaries supply sufficient high-quality and liquid assets. As part of the two consultations on this standard, RBNZ received a total of 20 submissions, with 14 submissions on the first consultation and 6 submissions on the second consultation. The feedback from issuers, investors, and other market participants to this second consultation has been constructive and respondents were broadly supportive of the introduction of a high-grade residential mortgage-backed securities framework for New Zealand, also known as the Residential Mortgage Obligations or RMO. 

    RBNZ has also decided to update the repo-eligibility conditions for RMBS in the transition to the final Residential Mortgage Obligations policy. This will include enhanced reporting requirements for any RMBS listed as repo-eligible and will require a pre-approval for portfolio changes, issuance, and up-sizing of internal RMBS. The Residential Mortgage Obligations framework will defines a “high-grade RMBS standard” to address the shortage of high-quality liquid assets (HQLA) in the New Zealand markets, offer mortgage lenders an additional funding tool, and support developing deeper private-label mortgage bond markets.

     

    Related Links

    Keywords: Asia Pacific, New Zealand, Banking, Securities, Residential Mortgage Obligations, Residential Mortgage Backed Securities, Mortgage Bond Standard, Responses to Consultation, RBNZ

    Related Articles
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    News

    EBA Calls on Resolution Authorities to Consider Impact of COVID Crisis

    EBA published a statement on resolution planning in light of the COVID-19 pandemic.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    News

    ECB Guideline on Materiality Threshold for Credit Obligations Past Due

    ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.

    July 08, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-14 With Respect to PPP and CARES Act

    FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.

    July 08, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5458