Reserve Bank issues consultation paper

Release date
19 December 2008

The Reserve Bank today released a Consultation Paper seeking comment on two proposed policies for non-bank deposit takers (NBDTs):

  • Related party requirements; and
  • Minimum capital ratio framework.

In September 2008, Parliament passed the Reserve Bank Amendment Act empowering the Reserve Bank as the prudential regulatory authority for NBDTs.

The proposed scope of related party regulation as set out in the Consultation Paper includes:

  • Definition of a related party;
  • Definition of a related party exposure; and
  • Setting a maximum limit on aggregate exposure to related parties.

The minimum capital ratio framework has three main components:

  • Definition and measurement of capital;
  • Definition and measurement of risk exposures; and
  • Setting a minimum capital adequacy ratio.

Further details are in the Consultation Paper found on the Reserve Bank's website.

Comments and responses to the questions raised in the Consultation Paper should be submitted by 9 February 2009, as regulations are targeted to be in place in the second quarter of 2009.

The Bank intends to undertake consultation with stakeholders early next year, and will release details of consultation meetings it will hold around the country.

The Bank will be consulting early next year for NBDTs' credit ratings and liquidity requirements.

For further information contact
Anthea Black
External Communications Adviser
Ph 04 471 3767, 021 222 5225, anthea.black@rbnz.govt.nz