RBNZ Announces COVID-19 Relief Measures for Financial Institutions
In the context of the disruption caused by COVID-19, RBNZ has announced regulatory relief measures to support the provision of credit and market functioning. Key among them is the RBNZ decision to delay the start date of the increased capital requirements for banks by 12 months, to July 01, 2021. RBNZ expects that this step will enable banks to provide an additional AUD 47 billion of credit. Should conditions warrant it next year, RBNZ will consider whether further delays are necessary. RBNZ also stated that it has a number of additional tools to provide additional liquidity and support to market functioning, should these be required in the future.
RBNZ is postponing the publication of exposure drafts of the revised policy documents related to the increased capital requirements. These drafts were planned to be published on April 01, 2020. Additionally, RBNZ will be extending the transition period for its revised outsourcing policy by 12 months. Affected banks will now need to be fully compliant with the new requirements by October 01, 2023. Finally, RBNZ will defer external-facing work on the following regulatory initiatives, for an initial period of six months:
- Review of the bank liquidity thematic review (and subsequent review of the liquidity policy)
- Review of the Insurance (Prudential Supervision) Act 2010
- Standard terms for Residential Mortgage Obligations
- Cyber resilience guidelines for all regulated entities
- Revisions to banks’ disclosure of regulatory breaches
- Review of the stress-testing framework and planned bank stress tests
- Revising the process for approving banks’ internal capital adequacy models for credit risk
Related Links
- Press Release, March 18, 2020
- Press Release, March 16, 2020
- Press Release, March 09, 2020
- Overview of Capital Adequacy Framework
Keywords: Asia Pacific, New Zealand, Banking, Insurance, Capital Requirements, COVID-19, Liquidity Requirements, Stress Testing, Credit Risk, Operational Risk, RBNZ
Featured Experts

Jing Zhang
Quantitative researcher; credit risk modeling and analysis expert; in-demand industry speaker; published author and CCAR authority

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.
Previous Article
IAIS Publishes Global Insurance Market Report for 2019Related Articles
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA Issues Erratum for Technical Package on Reporting Framework 3.0
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA Publishes Risk Dashboard for Third Quarter of 2020
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB Finalizes Guide on Supervisory Approach to Bank Consolidation
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
SRB Chair Outlines Work Priorities for 2021
The SRB Chair Elke König published an article setting out work priorities for 2021.
FDIC Selects Companies to Compete in Final Phase of Tech Sprint
FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.