New policy proposed for significant acquisitions by banks

Published: Tue 7 Dec 2010 11:24 AM
New policy proposed for significant acquisitions by banks
The Reserve Bank has today released a consultation paper proposing a new policy for locally incorporated registered banks considering making significant acquisitions, investments or business mergers (
The consultation paper proposes that banks should be required to obtain a notice of non-objection from the Reserve Bank before undertaking such transactions.
Deputy Governor Grant Spencer said a bank’s board of directors is responsible for assessing the merits and risks of any significant acquisition.
“However, the proposed policy is intended to enable the Bank to assess any risks to the wider financial system arising from a significant acquisition before that acquisition takes place,” he said.
Under the proposal, a new Banking Supervision Handbook document entitled Significant Acquisitions Policy (BS15) will be issued. This will provide the detail of the policy, including specifying what constitutes a significant acquisition and the information that would be required from banks.
The change will help to better align practices with international standards and is timely after the Global Financial Crisis.
Responses to the consultation paper should be submitted to the Reserve Bank by 31 January 2011. The paper can be accessed on the Bank’s website (

Next in Business, Science, and Tech

Grey Power Is Disappointed To Learn Of More Bank Closures
By: Grey Power New Zealand
Supply Chain On Brink Of Overload Says National Road Carriers
By: National Road Carriers
Supermarkets Announced As Government’s Second Market Study
By: New Zealand Government
Retail Sales Recover In The September 2020 Quarter
By: Statistics New Zealand
New Zealand Flies Into The Stratosphere
By: Kea Aerospace
Births And Deaths: Year Ended September 2020
By: Statistics New Zealand
Okay Boomer: Kākāpō Wins Bird Of The Year 2020
By: Forest And Bird
BNZ Optimistic About Year Ahead
Market Study Of Supermarkets ‘positive’ For Shoppers, Manufacturers
By: NZ Food and Grocery Council
Consumer NZ Welcomes Supermarket Investigation
By: Consumer NZ
Supermarket Inquiry Should Look At Govt’s Role
By: New Zealand National Party
Māori Population Estimates: At 30 June 2020
By: Statistics New Zealand
View as: DESKTOP | MOBILE © Scoop Media