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 https://consultations.rbnz.govt.nz. Consultation is open until 26 July.