Review of the capital adequacy framework for registered banks

Status: The Reserve Bank has published a consultation paper about what should qualify as bank capital.

Consultation period: Submissions close on 8 September 2017

14 July 2017

The Reserve Bank has started a public consultation about what type of financial instruments should qualify as bank capital. The consultation is about the nature of financial instruments that are suitable, rather than the amount of capital that banks must hold. Submissions close on 8 September 2017.

1 May 2017

The Bank published an issues paper on the review. The paper outlines the topics that the Reserve Bank plans to consider as part of the review and the main issues it has identified within each topic.

The issues paper is the first consultation document. The Reserve Bank seeks views about whether or not the range of topics and issues in the issues paper is complete, and whether there are certain issues that should be prioritised.

Submissions closed on 9 June 2017.

Background

The review of the capital adequacy framework aims to identify the most appropriate capital adequacy framework for locally incorporated registered banks, taking into account experience with the current framework and international developments.