| Date | Document | Description | Redactions |
|---|---|---|---|
| 14 Mar 2016 | A monkey on our back? (PDF 527KB) | An information paper on the evolution of NZ prudential framework (incl. capital adequacy framework), and the trade-offs between the nature of prudential framework, supervisory approach, and RBNZ’s level of resourcing | None |
| 18 May 2016 | Capital Review: components and timelines (PDF 329KB) | An information paper on the scope of the Capital Review (background, problem definition, and timeline)An internal write-up on modelling the costs and benefits of higher capital ratios | None |
| 30 Aug 2016 | Modelling the costs and benefits of higher capital ratios (PDF 1.1MB) |
An internal write-up on modelling the costs and benefits of higher capital ratios |
None |
| 7 Sept 2016 | Three papers on the level of bank capital (PDF 285KB) |
An information paper summarising the content of three Capital Review background papers |
None |
| 7 Sept 2016 | Literature review of optimal levels of bank capital (PDF 842KB) |
An information paper that summarises literature findings on the relationship between bank capital, lending costs, output, and optimal capital ratios |
None |
| 7 Sept 2016 | Capital review: current standard and international comparisons (PDF 175KB) |
An information paper that compares capital levels of NZ banks against international peers, and discusses the limitations of international comparisons of capital adequacy |
Information withheld on the grounds of Reserve Bank of New Zealand Act 1989 (RBNZ) s105 |
| 12 Sept 2016 | An updated version of the Harrison model for calculating a bank capital ratio (corrected) (PDF 556KB) |
An information paper that evaluates the costs and benefits of higher capital ratios |
None |
| 19 Sept 2016 | A model to calculate the net benefits of changing bank capital requirements (PDF 365KB) |
An internal write-up on modelling the net benefits of changing bank capital requirements |
None |
| 2 Nov 2016 | Capital Review Principles (PDF 244KB) |
A decision paper on the principles to apply in reviewing NZ’s capital adequacy framework |
Information withheld on the grounds of Official Information Act 1982 (OIA) s6(a) |
| 7 Mar 2017 | Speech: Review of bank capital requirements |
A speech delivered to NZBA that details the scope of the Capital Review |
None |
| 15 May 2017 | PSD: Monkeys, FSAPs, Philosophy and Resourcing. A tractable approach to a complex process (PDF 68KB) |
An information paper that discusses the Reserve Bank’s preferred approach to regulation and supervision, and the resulting resource implications |
None |
| 19 May 2017 | The countercyclical capital buffer strategy (PDF 772KB) |
An information paper that discusses different approaches to setting the countercyclical capital buffer |
None |
| 2 Aug 2017 | Speech: Banking regulation: Where to from here? |
A speech delivered to KangaNews NZ Debt Capital Markets Summit which provides an update on the Capital Review |
None |
| 28 Aug 2017 | Implications of stress tests for calibration of capital requirements (PDF 252KB) |
An information paper that discusses the limitations of stress tests and implications for system capital requirements |
Information withheld on the grounds of RBNZ s105 |
| 12 Sept 2017 | Next steps for the definition of capital (PDF 356KB) |
A decision paper that discusses the next steps for changing the definition of capital in the framework |
Information withheld on the grounds of RBNZ s105 |
| 4 Nov 2017 | What's the use of the countercyclical capital buffer? (PDF 975KB) |
An information paper that argues for an ‘early’ strategy for setting the countercyclical capital buffer |
None |
| 17 Nov 2017 | Next steps for the capital definition (PDF 123KB) |
A decision paper that recommends in-principle decisions on changing the definition of capital |
Information withheld on the grounds of RBNZ s105 |
| 17 Nov 2017 | The role of preference shares in the capital regime (PDF 704KB) |
A decision paper that recommends treatment of preference shares in the capital framework |
None |
| 20 Nov 2017 | A common equity instrument for mutual society banks (PDF 171KB) |
A decision paper that argues for development of a common equity capital instrument for mutual societies |
Information withheld on the grounds of RBNZ s105 |
| 28 Nov 2017 | Requiring banks to list shares locally (PDF 833KB) |
A decision paper that discusses the merits of requiring banks to partially list shares in NZ for financial stability reasons and to facilitate capital market development |
None |
| 6 Dec 2017 | International comparison of capital ratios (PwC report) (PDF 140KB) |
An information paper that discusses the findings of PwC’s comparison of NZ banks’ capital adequacy compared to international peers |
Information withheld on the grounds of RBNZ s105 |
| 8 May 2018 | 2017 PwC (NZ) study (PDF 246KB) |
An information paper that contains more details of the RBNZ assessment of the PwC report |
Information withheld on the grounds of RBNZ s105 |
| 19 Jun 2018 | Bringing the components of the Capital Review together (PDF 293KB) |
A decision paper that argues for additional constraints on internal capital models and proposes a framework for calibrating capital requirements |
Information withheld on the grounds of RBNZ s105 |
| 19 Jun 2018 | In-principle decisions on the denominator framework (PDF 1.3MB) |
A decision paper that recommends changes to the risk-weighted assets framework |
None |
| 19 Jun 2018 | Capital Review (PDF 1.6MB) |
A presentation that accompanies two decision papers on changes to the risk-weighted assets framework |
None |
| 24 Jul 2018 | Capital Review: Quantitative Impact Study (91KB) |
An information paper that discusses the scope and timeline of the Quantitative Impact Study |
Information withheld on the grounds of RBNZ s105 |
| 25 Jul 2018 | Background notes on Capital Review (PDF 275KB) |
An internal memo for the Governor that provides background information on the Capital Review |
None |
| 24 Aug 2018 | Inclusion of leverage ratio requirements in Ratio Paper (PDF 404KB) |
A decision paper that argues for leverage ratio disclosure and minimum requirements |
Information withheld on the grounds of RBNZ s105 |
| 24 Aug 2018 | Leverage Ratio in the Capital Review (PDF 1MB) |
A presentation that accompanies a decision paper on Leverage Ratio |
Information withheld on the grounds of RBNZ s105 |
| 27 Sep 2018 | Capital Disclosure (PDF 494KB) |
An information paper that summarises APRA’s proposals regarding ‘internationally harmonised’ capital ratios |
Information withheld on the grounds of OIA s9(2)(ba)(ii) |
| 27 Sep 2018 | APRA’s Capital Disclosure (PDF 568KB) |
A presentation that accompanies an information paper on APRA’s Capital Disclosure proposals |
None |
| 11 Oct 2018 | Total Loss Absorbing Capacity (‘TLAC’) (PDF 165KB) |
A decision paper that argues against the adoption of TLAC policy |
Information withheld on the grounds of OIA s6(a) |
| 19 Oct 2018 | Design options for an output floor for IRB banks (PDF 175KB) |
A decision paper that argues for the design of output floor and retention of scalar |
Information withheld on the grounds of RBNZ s105 |
| 19 Oct 2018 | The use of buffers in the Capital Review (PDF 189KB) |
A presentation that discusses the role of capital buffers |
Information withheld on the grounds of OIA s6(a) |
| 7 Nov 2018 | Capital requirements for sovereign, bank and externally rated corporate exposures in the IRB approach (PDF 86KB) |
A decision paper that argues for the capital treatment of sovereign, bank, and externally rated corporate exposures in the IRB approach |
Information withheld on the grounds of OIA s9(2)(ba)(i) and RBNZ s105 |
| 7 Nov 2018 |
Setting an output floor for the IRB approach (PDF 193KB) |
A presentation that argues for increasing the scalar used in the IRB approach |
Information withheld on the grounds of RBNZ s105 |
| 7 Nov 2018 |
Role of buffers in capital framework (PDF 248KB) |
A decision paper that argues for increasing the size of capital buffers over increasing minimum capital requirements |
Information withheld on the grounds of OIA s9(2)(ba) |
| 7 Nov 2018 |
Risk Appetite framework used to set capital requirements (PDF 425KB) |
A decision paper that recommends the use of risk appetite framework as input for calibrating capital ratios |
None |
| 7 Nov 2018 |
The Risk Appetite Framework: A framework for setting capital requirements (PDF 180KB) |
A presentation that accompanies a decision paper on the risk appetite framework |
Information withheld on the grounds of RBNZ s105 |
| 7 Nov 2018 |
Role of the countercyclical capital buffer in the capital framework (PDF 400KB) |
A decision paper that recommends an ‘early strategy’ for setting countercyclical capital buffer |
None |
| 13 Nov 2018 | Speech: Financial stability – ‘risky, safe, or just right?’ |
A speech delivered to UBS Australasia Conference that introduces the concept of risk appetite framework |
None |
| 20 Nov 2018 | Capital Ratio calibration (PDF 1.1MB) |
A decision paper that recommends a range of target Tier 1 capital ratio |
None |
| 20 Nov 2018 | Setting the capital ratio (PDF 666KB) |
A presentation that accompanies a decision paper on capital ratio calibration |
None |
| 30 Nov 2018 | Speech: Higher capital better for banking system and New Zealand |
Notes from an address delivered to Business NZ CEO Forum that argues for higher capital requirements |
None |
| 5 Dec 2018 | Capital buffering (PDF 713KB) |
A presentation that recommends the composition of the prudential capital buffer |
None |
| 5 Dec 2018 | Calibration of Leverage Ratio (PDF 137KB) |
A decision paper that recommends the calibration of minimum leverage ratio requirements |
Information withheld on the grounds of RBNZ s105 |
| 5 Dec 2018 | Capital ratio consultation (PDF 416KB) |
A presentation that seeks decisions on outstanding issues in the Capital Review |
Information withheld on the grounds of RBNZ s105 |
| 10 Jan 2019 | Letter in response to news article (PDF 360KB) |
Correspondence on Capital Review commentary |
Information withheld on the grounds of OIA s9(2)(a) |
| 25 Jan 2019 | Explanatory note on portfolio risk modelling in the New Zealand Context (PDF 393KB) |
A note that provides context on VaR modelling |
None |
| 3 Apr 2019 | Background paper (PDF 1.32MB) |
An outline of the analysis supporting the risk appetite framework |
None |
Information release: Capital Review proposals
The Reserve Bank has released papers that were used as inputs into the Capital Review Paper 4: How much capital is enough? proposals, following requests under the Official Information Act 1982. An additional document was added Explanatory note on portfolio risk modelling in the New Zealand context, which provides more details on the Reserve Bank’s modelling approach in estimating the desired level of capital for New Zealand.