RBNZ published a summary of the report on assessment of ANZ Bank New Zealand Limited's (ANZ NZ) compliance with capital adequacy requirements of RBNZ. The report, which is prepared by Deloitte, assesses the compliance of ANZ NZ with the capital adequacy requirements. The report identified some of instances of non-compliance indicating that historically there was insufficient rigor around the processes of ANZ NZ to ensure compliance. These instances of non-compliance are related to internal models for the calculation of regulatory capital and maintaining a compendium of approved models with RBNZ.
RBNZ is working with ANZ NZ to gain assurance that the areas of historical non-compliance with the capital adequacy requirements are being addressed. The findings of the report have been discussed with ANZ, which has been forthcoming in its readiness to address this issue. In June 2019, RBNZ had requested two reports from ANZ NZ under section 95 of the RBNZ Act 1989. ANZ NZ had engaged Deloitte, with the approval of RBNZ as per section 95, to prepare the reports. The first report, on the Director Attestation and Assurance framework of ANZ, was published in December 2019. As a result of the first report, RBNZ had issued a further section 95 notice requiring an external party to confirm by mid-2021 that ANZ has implemented all of the recommendations. Consequently, this latest section 95 report assessed the compliance of ANZ NZ with the capital adequacy requirements.
Keywords: Asia Pacific, New Zealand, Banking, Capital Adequacy, Operational Risk, Regulatory Capital, Internal Models, Compliance Risk, ANZ, RBNZ
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.