Bank prudential requirements
This page has all the policy documents relating to the current prudential requirements for banks — with the exception of the capital requirements which are on a separate page.The policy documents on this page also include the Orders in Council which impose public disclosure requirements on banks.
The current capital requirements for locally incorporated registered banks in New Zealand, as well as the new requirements being phased in as a result of our Capital Review, can be viewed on the Capital requirements for banks in New Zealand page.
The remaining requirements which formed part of the former Banking Supervision Handbook are listed in the table below.
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.
|Document||Date of Issue|
|The white list (list of exempt functions and services) (PDF 450KB)||March 2020|
|List of Pre-approved Functions and Services (PDF 55KB)||September 2017|
|Application Form A for BS11 - White list (DOCX 26KB)||September 2017|
|Application Form B for BS11 - List of Pre-approved Functions and Services (DOCX 27KB)||September 2017|
|Application Form C for BS11 - Relationship with subsidiary (DOCX 24KB)||September 2017|
|Application Form D for BS11 - Robust back-up capability (DOCX 27KB)||September 2017|
|Guidance for the preparation of a separation plan (PDF 267KB)||December 2017|
The 2006 version of the Outsourcing Policy has been superseded.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.
|Document||Document Reference||Date of Issue|
|Outsourcing Policy (PDF 45KB)||BS11||January 2006|
Recent changes to the Banking Supervision Handbook
We published revised versions of our banking handbook documents BS13 and BS13A that set out the liquidity policy applying to registered banks. These revisions came into force on 1 May 2021.
The changes introduced a new scale which modified the eligibility limits for residential mortgage-backed securities as liquid assets for the purpose of calculating mismatch ratios under the policy. The changes also specified the treatment of our Funding for Lending Programme and related assets for making calculations under the policy.
In March 2021, we published revised versions of our working copies of the 2 Orders in Council which set out the disclosure requirements for registered banks. These revisions incorporate changes made by Amendment Orders on 23 February 2021 and came into force on 31 March 2021.
The changes mean that a registered bank will no longer have to publicly disclose all breaches of its conditions of registration over its most recent reporting period, only those which are most significant.
We have also updated Document BS7 ‘Registered bank disclosure regime – overview of Orders in Council and related documents’. These changes are the final step in rolling out the new approach to the public disclosure of bank breaches which came into effect from 1 January 2021.
About the Bank Prudential Requirements
We encourage you and your advisers to make the Bank Prudential Requirements documents (formerly called the 'Banking Supervision Handbook') your first point of reference on any matters relating to banking supervision.
Where the documents above do not provide the information you need, let us know. In general, the best person to contact will be the Supervisor responsible for your bank.
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For all other queries about the Bank Prudential Requirements, email [email protected].