RBNZ Updates Bank Financial Strength Dashboard with First Quarter Data
In a recent communication, RBNZ highlighted that it has made available the data on financial health of banks registered in New Zealand, for up March 31, 2020. The dashboard for the quarter ending on March 2020 was produced on time amid the COVID-19 pandemic. Toby Fiennes of RBNZ pointed out that Bank Financial Strength Dashboard has been one of the key initiatives of RBNZ for disclosures amid COVID-19 crisis. The dashboard makes it easier to compare the relative risks and financial position of different banks and is more timely than disclosure statements. RBNZ plans to review the dashboard for banks, launch a related consultation in the first quarter of 2021, and explore a prudential disclosure dashboard for the insurance and non-bank deposit-taker sectors.
RBNZ discussed with banks on how to present information on some of the relief packages—such as mortgage deferrals—resulting in creation of different categories to the existing reporting classifications of banks. The key metrics covered in the dashboard are capital adequacy, asset quality, profitability, balance sheet, liquidity, issuer credit ratings, and nonperforming loan ratios of banks. RBNZ will be reviewing the dashboard starting later this year, partly to ensure it maintains a relevant picture of new emerging risks such as cyber and climate related risks. The review will also refresh some of the existing content, including adding or changing metrics, adding some new interactive features, and reviewing the publication process. The user community will be encouraged to provide their input on how to make the dashboard better. RBNZ will hold a public consultation to collect this feedback, most likely in the first quarter of 2021 and would aim to refresh the dashboard in late 2021. Along with the refresh, RBNZ is exploring a prudential disclosure dashboard for the insurance and non-bank deposit-taker sectors. RBNZ intends to begin consultation with insurers and non-bank deposit-takers in the last quarter of this year. A number of sector participants have been wanting data that is comparable across the industry. The insurance dashboard will be linked with the Insurance (Prudential Supervision) Act review and the review of insurer solvency standards, both of which are being relaunched in the fourth quarter of this year, following a delay due to COVID-19 outbreak.
Related Links
Keywords: Asia Pacific, New Zealand, Banking, COVID-19, Bank Financial Strength Dashboard, Disclosures, ESG, Reporting, Climate Change Risk, Basel, RBNZ
Featured Experts
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.
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous Article
ECB Updates List of Supervised Entities in EU in September 2020Related Articles
EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
BCBS and EBA Publish Results of Basel III Monitoring Exercise
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
PRA Updates Timeline for Final Basel III Rules, Issues Other Updates
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
US Treasury Sets Out Principles for Net-Zero Financing
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
EC Launches Survey on G7 Principles on Generative AI
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
