We are reviewing our policy in respect of registered branches of overseas banks. This review is relevant both to existing registered branches operating in New Zealand and to future applicants seeking registration.
The objective of the review is to create a simple, coherent and transparent policy framework for branches that fosters a sound and efficient financial system. The soundness and efficiency of the financial system is fundamental to the overall resilience of the New Zealand economy. To maintain a healthy and vibrant financial system we need Te Pekanga – our regulated entities, banks, insurers and NBDTs – to be sound and innovative and have constructive working relationships with us.
This consultation paper, the first of two, sets out current branch policy, the problem definition of the review, assessment principles, and some high level policy questions and options. We are seeking feedback from industry and the public on the key high level policy questions and the options we have for addressing the risks that branches present to our financial system.
We expect to publish a second consultation paper next year, setting out our proposed approach to branches.
Consultation closes at 5pm on 2 March 2022.