Deposit Takers Standards Open For Consultation

Published: Thu 16 May 2024 02:24 PM
The Reserve Bank is consulting on policy proposals for new core prudential standards to be made under the Deposit Takers Act 2023 (DTA).
Deputy Governor Christian Hawkesby says the standards set the rules that deposit takers will be licensed against under the DTA.
“Using the Proportionality Framework as a guide, we have thought carefully about creating suitable requirements for the different sizes and characteristics of financial institutions, from large banks through to smaller non-bank deposit takers,” Mr Hawkesby says.
The DTA strengthens New Zealand’s financial system through new regulatory powers and a new suite of standards applying to banks and non-bank deposit takers (NBDTs), and the introduction of the DCS. These features are complementary, and will provide New Zealanders with a safe and sound financial system, and one they can trust.
“The proposed core standards cover four important components of the regulatory regime: capital, liquidity, disclosure, and DCS related requirements. These ensure deposit takers can absorb losses, meet payments when they are due, provide timely prudential disclosures to the market, and meet data and disclosure requirements for DCS."
Director of Prudential Policy Kate Le Quesne says in developing the standards, we have captured what is working well under the existing prudential rulebook and what is a good fit to retain under the new legislative framework.
“We want the transition to the new regime to be efficient for both industry and the Reserve Bank,” Ms Le Quesne says.
“We are very grateful for the time and thought that deposit takers have devoted to our policy development already. With the consultation now open, we are looking forward to engaging with deposit takers in our upcoming workshops and discussing their feedback.”
Consultation materials can be found at Consultation is open until 26 July.

Next in Business, Science, and Tech

Waikato Seismic Research May Have Global Impact
By: Earthquake Commission
Reflections On "NZ Pays Too Much For Broadband"
By: Bill Bennett
Christchurch Man Becomes First NZer To Win Apple Design Award
By: Payper
Fact Checking Artificial Intelligence
Partnering Indigenous Knowledge Systems And Western Science To Help Freshwater Thrive
By: Zealandia
Download Weekly: 3g use slows as networks face closure
By: Bill Bennett
View as: DESKTOP | MOBILE © Scoop Media