Review of the capital adequacy framework for registered banks
Status: We are currently seeking feedback on the calculation of risk-weighted assets.
Consultation period: 2017 - 2018
19 December 2017
The Reserve Bank is seeking feedback on the options for calculating risk weighted assets.
Note: the submission period has now been extended to 19 March 2018.
- Review of the Capital Adequacy Framework for locally incorporated banks: calculation of risk weighted assets (PDF 365KB)
14 July 2017
The Reserve Bank sought feedback about what type of financial instruments should qualify as bank capital. The consultation was about the nature of financial instruments that are suitable, rather than the amount of capital that banks must hold. Submissions closed on 8 September 2017.
On 19 December, the Reserve Bank published its response to submissions.
- Capital Review Paper 2: What should qualify as bank capital? Issues and Options (PDF 1.2MB)
- Capital Review Paper 2: What should qualify as bank capital? Response to submissions (PDF 208KB)
Submissions for publication
On 7 November 2017 the Reserve Bank published the individual responses received as part of the consultation, where consent to do so was provided by submitters.
- ANZ (PDF 2.7MB)
- ASB (PDF 775KB)
- Combined response from The Cooperative Bank, SBS Bank, and TSB and Nelson Building Society (PDF 1.2MB)
- Contact Energy (PDF 1.6MB)
- Deutsche Craig (PDF 137KB)
- First NZ Capital (PDF 454KB)
- Forsyth Barr (PDF 153KB)
- Infratil (PDF 525KB)
- Kiwibank (PDF 6.2MB)
- Associate Professor Martien Lubberink (PDF 144KB)
- Chris Lee and Partners (PDF 4.4MB)
- NZBA (PDF 200KB)
- NZX (PDF 120KB)
- Russell McVeagh (PDF 207KB)
- Westpac NZ (PDF 63KB)
BNZ also provided a response but asked that it not be publically released.
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 was the first consultation document. The Reserve Bank sought views about whether or not the range of topics and issues in the issues paper was complete, and whether there are certain issues that should be prioritised.
Submissions closed on 9 June 2017.
- Review of the Capital Adequacy Framework for locally incorporated banks (PDF 804KB)
- Summary of capital review issues paper responses (PDF 976KB)
Submissions for publication
On 19 October 2017 the Reserve Bank published the individual responses received as part of the consultation, where consent to do so was provided by submitters.
- ACC and NZ Super Fund joint response (PDF 7.34MB)
- ANZ Bank response (PDF 2.95MB)
- ASB response (PDF 2.48MB)
- Chapman Tripp response (PDF 2.92MB)
- Co-op Bank, SBS, and TSB combined response (PDF 354KB)
- Federated Farmers response (PDF 234KB)
- Forsyth Barr response (PDF 34KB)
- Heartland Bank response (PDF 360KB)
- Kevin Nicholl response (PDF 20KB)
- Martien Lubberink (PDF 141KB)
- Michael Reddell response (PDF 53KB)
- Murray Jackson response (PDF 190KB)
- NZ Bankers Assn response part 1 (PDF 1.06MB)
- NZ Bankers Assn response part 2 (PDF 6.51MB)
- Positive Money response (PDF 1.8MB)
- Rabobank response (PDF 1.86MB)
- Roger Clarke response (PDF 691KB)
BNZ, Kiwibank and Westpac also provided responses, but asked that they not be publically released.
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.