Non-bank risk management guidelines released
The Reserve Bank today released its risk management programme guidelines (PDF 129KB) for non-bank deposit takers.
"The development of these regulations is another positive step forward in implementing the new prudential regime for non-banks which is aimed at improving the future resilience of New Zealand's non-bank financial sector," said Reserve Bank Deputy Governor Grant Spencer.
Deposit taking finance companies, building societies and credit unions are required to have a risk management programme from 1 September 2009. The programme needs to show how they will identify and manage credit risk, liquidity risk, market risk and operational risks, appropriate to each institution's particular circumstances.
Mr Spencer said risk management programmes will also need to show how an institution plans to address stress events that could disrupt their business, and identify the responsibilities of governing bodies and senior management.
"The Bank received many useful submissions in response to the draft guidelines released for public consultation in June. Submissions were generally supportive of the guidelines," Mr Spencer said.
Anthea Black, External Communications Adviser
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