RBNZ Issues Updates on Review of Capital Adequacy Framework for Banks
RBNZ published a summary of why it proposes to alter requirements for bank capital and the impact of its proposals, along with the presentation slides used for a media briefing and a bank forum. In addition, the RBNZ Deputy Governor Geoff Bascand presented a speech about the proposals to increase bank capital.
RBNZ had published, on December 14, 2018, a proposal to raise the amount of capital that banks must hold. It also published an updated version (Capital Review Paper 4) that proposes changes to regulatory capital requirements for locally incorporated banks. RBNZ also extended the submission period for the Capital Review Paper 4 proposals to May 03, 2019. The amendments to the Capital Review Paper 4 reflect:
- The change to the deadline for submissions, which has been extended from March 29, 2019 to May 03, 2019
- Clarification on the current capital framework’s treatment of tier 2 capital
- Clarification to note that proposed restrictions on distributions apply, depending on the level of the prudential capital buffer
- Minor word changes to enhance clarity or to correct typographical errors
Related Links
- Notification
- Summary Explanation (PDF)
- Media Briefing Presentation (PDF)
- Bank Forum Presentation (PDF)
- Speech: Safer Banks for Greater Well-Being
- Slides: Safer banks for Greater Well-Being (PDF)
Keywords: Asia Pacific, New Zealand, Banking, Capital Requirements, Capital Buffers, IRB Modeling, VAR Modeling, Capital Adequacy Framework, RBNZ
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
APRA Publishes Results of Climate Risk Self-Assessment Survey
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
ACPR Publishes Updates Related to CRD IV and Covered Bonds
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
EIOPA Publishes Guidance on Climate Change Scenarios in ORSA
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
EBA and ECB Respond to Proposals on Sustainability Disclosures
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
EBA Publishes Multiple Regulatory Updates for Regulated Entities
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
EESC Opines on Proposals on CRR and European Single Access Point
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury Publishes Multiple Regulatory Updates in July 2022
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.