The Banking Supervision Handbook - banking supervision policy documents and regulations

This page contains the handbook documents and Orders in Council setting out the details of the policy framework and rules that apply to registered banks. The information is updated from time to time.

Recent changes to the Banking Supervision Handbook

April 2020 – the Reserve Bank announced on 18 March 2020 that it would extend the length of the transitional period for implementing the new outsourcing policy from 5 years to 6 years, and reduce the minimum core funding ratio under its liquidity policy from 75% to 50%. The Reserve Bank further announced on 2 April 2020 that it had tightened existing restrictions on distributions payable to holders of bank capital, via changes to all New Zealand-incorporated banks’ conditions of registration. To reflect these changes, which took effect in banks’ conditions of registration on 2 April, the Reserve Bank has issued revised versions of the following Handbook documents –

• “Statement of Principles – Bank Registration and Supervision” (BS1), to update the standard wording of conditions of registration that is provided in BS1, and add some explanatory text; and
• the September 2017 version of “Outsourcing Policy” (BS11), to incorporate minor changes needed to extend the transitional period.

Table of contents

Information on the handbook

Registered banks and their advisers are encouraged to make the handbook the first point of reference on specific matters relating to banking supervision. Where a matter is not addressed in the handbook, the matter should be raised with the Reserve Bank. In general, the appropriate contact person at the Reserve Bank will be the analyst responsible for the registered bank concerned.

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For other queries regarding this handbook, please email [email protected].

Accompanying documents for the outsourcing policy

Under the outsourcing policy (BS11) dated September 2017, the Reserve Bank may issue a list of exempt functions and services (the 'white list'). The Reserve Bank may also issue a List of Pre-approved Functions and Services. Banks may enter in arrangements captured on this list without requiring non-objection from the Reserve Bank but must still ensure such arrangements comply with the rest of the policy.

BS11 also allows the Reserve Bank to issue applications forms to assist banks.

Outsourcing Transitional

The 2006 version of the Outsourcing Policy has been superseded. However, any bank that was subject to the Outsourcing Policy as at 30 September 2017 will continue to have to meet any relevant requirements of the 2006 policy for a transitional period of 6 years from that date, as well as being subject to the current version of the policy referred to in the main table above.

Basel III Transitionals

These are specific (expired) versions of Banking Supervision Handbook documents that are referred to by the current versions of the same documents.