Key prudential requirements

The table below provides information on some key prudential requirements to which banks operating in New Zealand may be subject. More comprehensive information can be found in the banking supervision handbook.

Capital	New Zealand-incorporated registered banks are subject to conditions of registration requiring them to maintain a minimum level of, and quality of, capital relative to their risk-weighted assets.
Liquidity	Large New Zealand-registered banks are subject to conditions of registration relating to liquidity management, including both quantitative and qualitative requirements.
Governance	New Zealand-incorporated registered banks are subject to conditions of registration relating to corporate governance.
Disclosure	All New Zealand-registered banks are required to publish a quarterly disclosure statement. These disclosure requirements are administered by the Reserve Bank of New Zealand.
Credit ratings	All New Zealand-registered banks must obtain and maintain a credit rating applicable to their long-term senior unsecured obligations payable in New Zealand, in New Zealand dollars.
Outsourcing	Large New Zealand-registered banks are subject to a condition of registration that requires them to have the legal and practical ability to control and execute core outsourced functions.
Connected exposures	New Zealand-incorporated registered banks are subject to limits on the level of credit exposures that they have to connected persons.