RBNZ is consulting on the insurance solvency standards and the NZ IFRS 16 on leases. Comments are requested by August 24, 2018. RBNZ aims to finalize the proposed changes and amend the current solvency standards with effect from January 01, 2019.
The consultation proposes changes to the insurance solvency standards to cater to the new assets and liabilities introduced by NZ IFRS 16. RBNZ seeks additional information from licensed insurers on the current and proposed accounting treatment of lease contracts through a survey in Appendix A. The paper also discusses the requirements of NZ IFRS 16, the reasons for the proposed changes, and the alternatives considered. The paper sets out matters considered by RBNZ in developing the proposed changes. Appendix B of the consultation paper sets out the draft text of the proposed solvency standard changes while Appendix D sets out a range of alternative options for changes RBNZ has considered and the reasons why these are not preferred.
Comment Due Date: August 24, 2018
Effective Date: January 01, 2019
Keywords: Asia Pacific, New Zealand, Insurance, Accounting, Leases, NZ IFRS 16, Solvency, RBNZ
Previous ArticleDNB Publishes Banking and Insurance Newsletters for June 2018
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.