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
US Agencies Publish Results of the Shared National Credit ReviewRelated Articles
PRA Consults on Implementation of Certain Provisions of CRD5
PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).
EIOPA Report Identifies Key Financial Stability Risks for Insurers
EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.
EBA Publishes Risk Dashboard for First Quarter of 2020
EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.
EBA Issues Updates on Stress Test Exercise for Banks in EU
EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.
PRA Proposes Guidance Related to Matching Adjustment under Solvency II
PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.
MAS Issues Guidance on Dividend Distributions by Banks
MAS published a statement guidance on dividend distribution by banks.
APRA Updates Guidance on Capital Management for Banks
APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.
FSB Report Reviews Macro-Prudential Framework and Tools in Germany
FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.
EBA Urges Firms to Finalize Preparations for End of Brexit Transition
EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.
SRB on Operational Continuity in Resolution and FMI Contingency Plans
SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.
