Completed policy development
This section contains consultations where the opportunity to respond is closed, analysis is complete, and the Reserve Bank has published an update or final policy position.
LVR Consultation Document - September 2021 (PDF 1.35 MB)
A loan-to-value ratio (LVR) is a measure of how much a bank lends against mortgaged property, compared to the value of that property. Limits on high LVR residential mortgage lending have been in place since October 2013. The restrictions have been revised over time and were removed in response to the economic impact of the COVID-19 pandemic in 2020 and later reinstated at 1 March 2021 at the same level as prior to the onset of COVID-19, with a further tightening of investors’ restrictions taking effect on 1 May 2021.
Summary of submissions and policy decisions on proposed breach reporting and publication regime (PDF 247.26 KB)
The Reserve Bank has published a consultation paper proposing changes to the reporting and publishing of regulatory breaches by banks.
Consultation paper: Reinstating Loan-to-Value Ratio Restrictions (PDF 1.68 MB)
A loan-to-value ratio (LVR) is a measure of how much a bank lends against mortgaged property, compared to the value of that property. Temporary limits on high LVR residential mortgage lending have been in place since October 2013.
The Future of Cash System - Te Pūnaha Moni Anamata consultation paper (PDF 1.69 MB)
Cash system participants and the wider public have been asked for their views about the Reserve Bank taking a more active role in the cash system. The Bank’s ongoing Future of Cash – Te Moni Anamata programme is considering the implications for New Zealanders of falling cash use for every-day transactions, including the impacts on the system that supplies, moves and stores it.
The Reserve Bank has now completed its stocktake of the prudential requirements for banks and non-bank deposit takers (NBDTs). The objective of the stocktake was to identify ways to improve the efficiency, clarity, and consistency of the regulatory requirements in those sectors. This has led to several strands of work to implement improvements identified in the stocktake.
The Bank Financial Strength Dashboard went live on 29 May 2018. The Dashboard involves publication on the website of key information on locally incorporated banks. By presenting this information in one place and in a standardised format, the Dashboard aims to enhance market discipline by making this information more accessible and facilitating comparisons across banks. The Dashboard was an outgrowth of the 2015 Regulatory Stocktake.
The Reserve Bank completed a consultation on a revised Outsourcing Policy (BS11), which applies to all locally incorporated banks whose net liabilities exceed $10 billion and sets requirements that banks need to meet when outsourcing particular functions and services, especially where the service provider is a related party of the bank. The final policy was published on 20 September.
The dual registration policy for small foreign banks consultation proposes a way to assess whether these banks may be permitted to ‘dual-register’, simultaneously operating a local branch alongside a subsidiary.
The Reserve Bank consulted on a revised Framework for Restrictions on High-LVR Residential Mortgage Lending (BS19) and published a response to submissions in September 2016. The Reserve Bank has also published a Regulatory Impact Assessment of these changes
After considering submitters’ feedback, the Reserve Bank has decided to publish individual submissions to public consultations on the website when it receives consent to do so.
The Reserve Bank has updated the Banking Supervision Handbook document Guidelines on Anti-Money Laundering and Countering Financing of Terrorism (BS5).
The Reserve Bank is redeveloping the current registered bank balance sheet collection (Standard Statistical Return). Financial instruments, and associated definitions, are being updated to reflect changes in statistical collection best practise, with the redesign also addressing gaps in data requirements.
The Reserve Bank has finalised changes to the capital adequacy requirements for residential mortgage loans for investment properties, as part of the second stage of the housing review, changes to the capital adequacy requirements for reverse mortgage loans, changes to the definition of capital and changes to the process requirements bank’s must meet to recognise instruments as regulatory capital or repay a capital instrument.
The Reserve Bank has updated the bank disclosure Orders in Council to remove the public disclosure requirement for solo bank financial statements. This follows an earlier consultation document and feedback statement.
The Reserve Bank has finalised amendments to the bank disclosure Orders in Council to deal with the new approach to financial asset impairment in NZ IFRS 9. These are in line with the proposals in a consultation paper, which received no objections.