Featured Product

    RBNZ Outlines Regulatory Priorities for 2020-2023

    July 31, 2020

    RBNZ released the Statement of Intent for 2020–2023, which details its key regulatory priorities and focus areas for this period. One of the recent focus areas is Phase 2 of the Review of the Reserve Bank Act on the regulation of deposit takers and the introduction of a deposit insurance scheme. In light of the challenges posed by the pandemic, RBNZ has decided to extend the third round of consultation for Phase 2 of the Review of the Act by six months from the original deadline for submissions and the new deadline will be October 23, 2020.

    In addition to supporting recovery from the economic impact of COVID-19 crisis, RBNZ is focused on a wide range of initiatives, including assisting the transition to a low-carbon future through the climate change work, preparing for changes to its governing legislation, making the most of opportunities associated with fintech, and collaborating closely with industry, government, and co-regulators in the best interest of all New Zealanders. Work in the area of climate risk involves Climate-related Financial Disclosures proposal, Sustainable Finance Forum Interim Report, National Climate Change Adaptation Risk Assessment/Plan, contribution to a COVID-19 recovery that is cognizant of climate risks and opportunities, and working with stakeholders including the Network for Greening the Financial System, the Sustainable Insurance Forum, BIS, and other international bodies. RBNZ will continue to work closely with stakeholders to identify and remove any unnecessary barriers to new firms entering the system or obstructions for incumbent firms developing fintech solutions. RBNZ will also finish the review of the Reserve Bank Act to put in place a single regulatory regime for all deposit-takers. Additionally, for an initial period of generally six months, RBNZ has deferred the following initiatives and will review and communicate an update on its position later in 2020:

    • Implementation of planned increases to capital requirements by at least 12 months and imposing dividend restrictions to ensure banks use current capital buffers to support lending
    • 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

    RBNZ also released the results of a survey assessing the central bank's delivery on the commitments set out in its relationship charter. The results showed banks were generally positive about their relationship with the RBNZ staff, its communications, and its willingness to ask for feedback. RBNZ will be working in the year ahead to respond to the lessons from the survey.

     

    Related Links

    Keywords: Asia Pacific, New Zealand, Banking, Insurance, Capital Framework, Climate Change Risk, ESG, Fintech, COVID-19, Stress Testing, Basel, RBNZ

    Featured Experts
    Related Articles
    News

    EBA Finalizes Remuneration Standards for Investment Firms in EU

    EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).

    January 21, 2021 WebPage Regulatory News
    News

    ECA Recommends Actions to Enhance Resolution Planning for Banks

    EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.

    January 20, 2021 WebPage Regulatory News
    News

    BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK

    BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.

    January 20, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules on Identity Verification of Depositor Protection

    PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).

    January 20, 2021 WebPage Regulatory News
    News

    FSB Publishes Work Program for 2021

    FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.

    January 20, 2021 WebPage Regulatory News
    News

    FCA Issues Update on Move to New Data Collection Platform

    FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.

    January 20, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Derivation Rules for Reporting by Banks

    Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.

    January 19, 2021 WebPage Regulatory News
    News

    FED Revises Capital Planning and Stress Testing Requirements for Banks

    FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.

    January 19, 2021 WebPage Regulatory News
    News

    ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020

    ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.

    January 19, 2021 WebPage Regulatory News
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6484