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.

Capital requirements

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.

Capital requirements for banks in New Zealand

The remaining requirements which formed part of the former Banking Supervision Handbook are listed in the table below.

Document Document reference Date of issue
Statement of principles – bank registration and supervision (PDF 1.1MB) BS1 October 2021
Capital requirements and credit risk requirements BS2A and BS2B replaced by BPR100 to BPR160 October 2021
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Market risk guidance (PDF 1.3MB) BS6 has been replaced by BPR140 (see above) October 2021
Registered bank disclosure regime – overview of Orders in Council and related documents (PDF 170KB) BS7 September 2021
Registered bank disclosure regime – explanatory information on Orders in Council (PDF 679KB) BS7A June 2018
Connected exposures policy (PDF 244KB) BS8 October 2021
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 1.1MB)
Also see accompanying documents below
BS11 April 2020
Guidelines on a bank's internal capital adequacy assessment process (PDF 1MB) BS12 is now incorporated into BPR100 October 2021
Liquidity policy (745KB) BS13 May 2021
Liquidity policy annex: liquid assets (PDF 861KB) BS13A May 2021
Corporate governance (PDF 95KB) BS14 July 2014
Significant acquisitions Policy (PDF 129KB) BS15 December 2011
Application requirements for capital recognition or repayment and notification (PDF 1.2MB)  BS16 has been replaced by BPR120 October 2021
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 434KB) BS19 October 2021
Orders in Council (disclosure requirements)

Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order 2014 (as amended) (PDF 1MB) Local OIC September 2021
Registered Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (as amended) (PDF 865KB) Branch OIC March 2021
List of documents "Incorporated by Reference" in the OICs

List of quasi-sovereign agencies and supranationals for the OICs (PDF 92KB)

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.

Document Document Reference Date of Issue
Outsourcing Policy (PDF 45KB) BS11 January 2006

Recent changes to the Banking Supervision Handbook

May 2021

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.

March 2021

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.

Read more about the public disclosure of bank breaches

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].