RBNZ Consults on Review of Capital Adequacy Framework for Banks
RBNZ had published, on December 14, 2018, a proposal to raise the amount of capital that banks must hold. It is now publishing an updated version (Capital Review Paper 4) that proposes changes to regulatory capital requirements for locally incorporated banks. RBNZ has also extended the submission period for the Capital Review Paper 4 proposals to May 03, 2019. RBNZ also published an explanatory note on the portfolio risk modeling in the context of New Zealand, which is another one of the papers used as input for this consultation paper.
The amendments to the Capital Review Paper 4 (the newly issued consultation paper) 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
- News Release
- Consultation Paper (PDF)
- Explanatory Note on Portfolio Risk Modeling (PDF)
- Other Papers Used as Inputs
- December 2018 Consultation
Comment Due Date: May 03, 2019
Keywords: Asia Pacific, New Zealand, Banking, Capital Requirements, Capital Framework, IRB Modeling, VAR Modeling, Capital Adequacy Framework, RBNZ
Previous Article
BaFin Publishes Circular on Determination of MREL for BanksRelated Articles
OSFI Issues Results of Pilot on Climate Risk Scenario Analysis
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
ECB Issues Opinions on Green Bonds Standard and CRR Proposals
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
ESRB Explores Policy Response to Risks Arising from Digitalization
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
HKMA Consults on FIRO Code, Revises Policy on Foreign Exchange Risk
The Hong Kong Monetary Authority (HKMA) is consulting on the draft Financial Institutions (Resolution) Ordinance (Cap. 628), or FIRO, Code of Practice chapter on liquidity and funding in resolution, until March 14, 2022.
FI Publishes Multiple Regulatory and Reporting Updates
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
EBA Issues Guide on Bank Resolvability, Consults on Transferability
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
