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

September 2017 - the Reserve Bank has published a new Handbook document "Outsourcing Policy" (BS11) (PDF 252KB)  dated September 2017. This is a revision of the January 2006 BS11 designed to address shortcomings in how the 2006 policy was interpreted and to ensure a better alignment with the Open Bank Resolution (OBR) Pre-positioning Requirements Policy (BS17) (PDF 259KB). The revised policy includes a five year transitional path beginning on October 1 2017. Parts of the 2006 BS11 may remain relevant for banks until the end of the transitional period. A revised version of the "Statement of Principles - bank registration and supervision" (BS1) (PDF 387KB) with consequential amendments has been published at the same time.

December 2016 - the Reserve Bank has updated the Handbook document “Statement of Principles - bank registration and supervision” (BS1) (PDF 387KB) to reflect a revised approach to the dual registration of small foreign-owned banks in New Zealand. The changes to BS1 clarify how branch activities may be restricted at small dual-registered banks from non-equivalent home states. A summary of submissions to the consultation on the proposed policy and final policy decision are available on the Consultations and Policy Initiatives page.

October 2016 – the Reserve Bank has updated the Handbook document “Framework for Restrictions on High-LVR Residential Mortgage Lending” (BS19) (PDF 174KB). This includes changes needed to put into effect the tighter nationwide restrictions on investor lending from 1 October, and a number of other smaller changes. For more information see the Loan-to-value ratio restrictions page.

 

Table of contents

Document

Document Reference

Date of Issue

Statement of principles – bank registration and supervision (PDF 387KB)

BS1

September 2017

Capital adequacy framework (standardised approach) (PDF 1.3MB)

BS2A

November 2015

Capital Adequacy Framework (internal models based approach) (PDF 1.1MB)

BS2B

November 2015

Application for status as a registered bank: Material to be provided to the Reserve Bank (PDF 90KB)

BS3

March 2011

Audit obligations (PDF 68KB)

BS4

June 2014

Guidelines on Anti-Money Laundering and Countering Financing of Terrorism (PDF 71KB)

BS5

June 2016

Market risk guidance notes (PDF 285KB)

BS6

March 2011

Registered bank disclosure regime – overview of Orders in Council and related documents (PDF 56KB)

BS7

September 2015

Registered bank disclosure regime – explanatory information on Orders in Council (PDF 79KB)

BS7A

September 2014

Connected Exposures Policy (PDF 70KB)

BS8

November 2015

Application for consent to acquire or increase significant influence over a registered bank: Material to be provided to the Reserve Bank (PDF 53KB)

BS9

April 2013

Review of Suitability of Bank Directors and Senior Managers (PDF 62KB)

BS10

March 2011

Outsourcing Policy (PDF 252KB)

BS11

September 2017

Guidelines on a Bank's Internal Capital Adequacy Assessment Process ("ICAAP") (PDF 49KB)

BS12

December 2007

Liquidity Policy (PDF 196KB)

BS13

July 2014

Liquidity Policy Annex: Liquid Assets (PDF 182KB)

BS13A

December 2011

Corporate Governance (PDF 95KB)

BS14

July 2014

Significant Acquisitions Policy (PDF 129KB)

BS15

December 2011

Application requirements for capital recognition or repayment and notification requirements in respect of capital (PDF 189KB)

BS16

November 2015

Open Bank Resolution (OBR) Pre-positioning Requirements Policy (PDF 259KB)

BS17

September 2013

Registration of Covered Bonds: process and information requirements (PDF 79KB)

BS18

December 2013

Framework for Restrictions on High-LVR Residential Mortgage Lending (PDF 174KB)

BS19

October 2016

Orders in Council (disclosure requirements)



Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order 2014 (PDF 540KB) (as amended)

Local OIC

September 2015

Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (PDF 318KB) (as amended)

Branch OIC

September 2015

OIC supplements to the New Zealand Gazette dated 21 February 2014 and 26 May 2014, New Zealand Gazettes dated 19 February 2015 and 6 August 2015



List of Documents "Incorporated by Reference" in the OICs



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.

You can subscribe to an email list which will keep you informed of updates to the Banking Supervision handbook. There is no charge for this service.

For other queries regarding this handbook, please email rbnz-info@rbnz.govt.nz.

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 5 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

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.

Document

Document Reference

Date of Issue

BS2A October 2010 Expired (PDF 1.1MB)

BS2A

October 2010

BS2B August 2012 Expired (PDF 2.3MB)

BS2B

August 2012