Reserve Bank consults on changes to banks' reporting of breaches
The Reserve Bank today published a consultation paper proposing changes to the reporting and publishing of breaches by banks.
Currently banks are expected to notify the Reserve Bank promptly of breaches of their conditions of registration and are required to publish them in their disclosure statements.
The introduction of the Bank Financial Strength Dashboard, updated quarterly, and subsequent move from quarterly to six-monthly disclosures from individual banks means it can take longer for the market to become aware of a breach.
To ensure this information is available in a timely manner, it is proposed that banks will be required to notify the Reserve Bank of all breaches, and that the Reserve Bank will maintain a list of non-minor breaches on its website. In a change to current practice, it is proposed that minor breaches will no longer be disclosed.
The consultation closes at 5.00 pm on 14 December 2018.