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Review of the capital adequacy framework for registered banks

We announced our final policy decisions on the Capital Review in 2019 and implementation starts on 1 October 2021. These include new rules for instruments that make up a bank’s capital, and consulting about the responses we would take if a bank did not meet capital buffer requirements.

17 June 2021

We have published the finalised bank capital adequacy requirements, outlined in the new 'Banking Prudential Requirements' (BPR) documents.

The new rules implement the decisions made during the Capital Review and a comprehensive, five-year project, to restructure how the capital adequacy rules are written and presented.

The new framework increases the amount of capital banks must have, which will make the banking system safer for all New Zealanders. Increases in capital will be phased in over a seven-year period, starting from July 2022. Other changes will be phased in from 1 October 2021 onwards.