Reserve Bank consults on Regulatory Stocktake
The proposed changes arise out of a Regulatory Stocktake the Bank announced a year ago, in which it is reviewing the prudential requirements applying to registered banks and licensed Non-bank Deposit Takers (NBDTs). The purpose of the stocktake is to enhance the efficiency, clarity, and consistency of the prudential requirements applying in those sectors.
"There have been significant changes to the regulation of banks and NBDTs over the last few years," said Toby Fiennes, Head of Prudential Supervision. "While we have a robust regulatory framework that helps to ensure the soundness and efficiency of the financial system, it is good practice to review regulation periodically to ensure it is not creating unnecessary inefficiencies or costs."
Public consultation on the project is being undertaken in two parts. The first is the release of a public consultation document on matters relating to registered banks. The second is the simultaneous release of an Industry Update for NBDTs, noting how the Bank proposes to respond to the NBDT-related matters that have been raised as part of the stocktake.
The consultation document for banks includes a number of proposals designed to make the prudential regime operate more efficiently. These include possible changes to the frequency and content of the disclosure statements prepared by banks, and measures to improve the clarity and usability of the prudential requirements applying to banks. The Industry Update for NBDTs also discusses areas where the Bank proposes to do further work (such as the calibration of NBDT capital requirements).
"Overall, we expect that the changes that are being considered as part of the stocktake will result in significant cost savings for banks, and improvements in the efficiency of the regulatory regime," Mr Fiennes said. "We encourage submitters on the consultation document to provide free and frank views on the proposed changes, and we will continue to discuss these proposals with stakeholders over the coming months.
"This has been a major exercise over the last year, with extensive consultation with the industry, including four industry workshops, and the involvement of a panel of independent banking and regulatory experts, to test our thinking. We are very grateful for the valuable contributions they have made."
Submissions on the consultation document close at 5pm on 16 September 2015, with final decisions on changes currently expected before the end of 2015.
- The Regulatory Stocktake: An Update, a speech to the New Zealand Bankers Association by Toby Fiennes, Head of Prudential Supervision, 21 July 2015
- Consultation Document (PDF 499KB)
- Non-bank Deposit Takers Industry Update (PDF 48KB)
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