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
- 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 ArticleUS Agencies Publish Results of the Shared National Credit Review
BIS and BoE launched the BIS Innovation Hub Center in London, which is the fourth new Innovation Hub Centre to be opened in the past two years.
ESRB published recommendations on the reciprocation of macro-prudential measures in Belgium, France, Luxembourg, Norway, and Sweden.
EC published the Delegated Regulation 2021/931, which supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to the regulatory technical standards specifying the method for identifying derivative transactions with one or more than one material risk driver.
BCBS is consulting on preliminary proposals for the prudential treatment of cryptoasset exposures of banks.
EBA issued a revised list of validation rules under the implementing technical standards on supervisory reporting.
BIS Innovation Hub, BDF, and SNB announced that, together with a private-sector consortium led by Accenture, they will conduct an experiment using wholesale central bank digital currency (wCBDC) for cross-border settlement.
ESAs published two amended implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs).
EBA published revised guidelines on major incident reporting under the Payment Service Directive (PSD2).
BCBS updated the year-end and annual average exchange rates in context of the global systemically important bank (G-SIB) assessment exercise.
HKMA issued a circular informing the industry about its intention to revise the target effective dates for the revised frameworks on credit risk, operational risk, output floor, leverage ratio, market risk, and credit valuation adjustment risk.