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
CMF Extends Application Period for Accounting Standard ProvisionsRelated Articles
BCBS Amends Guidelines on Sound Management of AML/CFT Risks
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies Finalize Amendments to Swap Margin Rule
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA Letter Sets Expectations on Approach to Managing Climate Risks
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS Publishes List of Internationally Active Insurance Groups
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC Launches Consultation on Review of Solvency II Directive
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB Consults on Supervisory Approach to Consolidation in Banking
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS on Package for 2020 Data Collection on ICS and Aggregation Method
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.
