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 Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.
The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.
The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).
The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.