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Deposit Takers Act 2023 - Proportionality Framework Consultation

We asked for feedback on our proposed proportionality framework for developing standards for deposit takers under the Deposit Takers Act 2023.

Summary of submissions and next steps

This consultation closed on 25 September 2023. We received 14 submissions, published in the document below, along with a summary of submissions.

Submissions on Deposit Takers Act Proportionality Framework (PDF 5.95 MB)

Summary of Submissions (PDF 488 KB) 

Please note that some submissions discuss the DCS Levy Framework and the Proportionality Framework. We will publish the summary of the DCS Levy Framework consultation and other DCS Levy submissions later in conjunction with the Treasury consultation on the Statement of Funding Approach.

About the consultation

The Deposit Takers Act 2023 was enacted in July 2023. The Act implements a new regulatory regime for deposit takers in New Zealand. The Act requires the Reserve Bank to prepare a proportionality framework setting out how the Reserve Bank takes into account the proportionality principle contained in the Act when developing standards.

What we asked for feedback on 

We have outlined our proposed proportionality framework which will guide how the Reserve Bank develops proportionate prudential standards for deposit takers. The framework sets out our proposed:

  • scope and purpose of the proportionality framework
  • approach to tailoring standards
  • grouping of deposit takers into 3 groups based on total assets for the purpose of developing and applying standards
  • approach to making variations to deal with firm-specific circumstances, and
  • approach to transitioning deposit takers between groups.

We published 2 documents as a part of our consultation on our proposed proportionality framework:

Proportionality Framework

This document is a draft version of our proposed proportionality framework that we intend to publish following feedback through this consultation process.

Proportionality Framework consultation paper

This document outlines our analysis explaining the Reserve Bank’s proposed approach to developing the proportionality framework.

We asked for feedback on our proposed proportionality framework outlined in these documents to inform our final decisions.

Consultation materials

Proportionality Framework consultation paper (PDF, 505 KB)

Proportionality Framework (PDF, 388 KB)