The Banking Supervision Handbook - banking supervision policy documents and regulations

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

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 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.

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.