Branches of overseas banks can be an important link between our economy and global financial markets. The objective of the review is to create a simple, coherent and transparent policy framework for branches that protects and promotes financial stability.
Key proposals outlined in the paper include:
- that all branches in New Zealand be restricted to engaging in wholesale business (that is with corporates, institutions and other wholesale investors), meaning they could not take retail deposits or offer products or services to retail customers;
- to limit the maximum size of a branch to NZ$15 billion in total assets; and
- that we continue to allow the dual registration of branches, provided:
- the relevant subsidiary and branch are sufficiently separate, and any identified risks are mitigated by specific conditions of registration; and
- dual-registered branches only conduct business with large wholesale customers – those with consolidated turnover greater than NZ$50 million.
A three month consultation period on the consultation paper starts on 24 August 2022 and closes on 16 November 2022.
How to make a submission
We welcome submissions on the policy questions set out in our Branch Policy consultation, and any alternative options or proposals, to be made before 16 November 2022. To make a submission, please email [email protected].
We will also be hosting an online webinar on Wednesday 31 August where RBNZ staff will provide an overview of the consultation paper and attendees will be able to ask questions. Any interested parties are welcome to attend. To register your interest please email [email protected].