Deposit Takers Act becomes law
The Deposit Takers Act 2023 (the Act) received Royal Assent on 6 July 2023. This follows the Finance and Expenditure Committee's consideration of the Bill.
The Deposit Takers Act 2023 replaces the following Acts:
Banking (Prudential Supervision) Act 1989
Non-bank Deposit Takers Act 2013
Strengthening the RBNZ’s powers
The strengthening of our supervision and enforcement powers allows us to act to minimise the risks of high-impact failures.
What the Act does
- Provides additional powers, including new requirements for directors, more inspection powers and an improved penalty framework.
- Creates a single regulatory regime for all entities who hold deposits — for example, banks and credit unions, to enable robust monitoring of all deposit takers to ensure consumers are protected.
- Provides the framework for managing and resolving any deposit taker in financial distress.
Introducing the new measures
A substantial work programme is underway to implement the new prudential framework for deposit takers.
We have begun developing and consulting on the regulatory requirements and will introduce a licensing process for deposit takers to operate under the regime. Parts of the current Banking (Prudential Supervision) Act 1989 relating to the regulation and supervision of registered banks and the Non-bank Deposit Takers Act 2013 will remain in force until the remaining parts of the DTA have been fully implemented.