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

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582