DTA legislation and regulation
Find out more about the new regulatory environment under the Deposit Takers Act 2023.
Why we are creating a single regulatory regime
Under the Deposit Takers Act 2023 (DTA), we are bringing all deposit takers under a single, consistent and proportionate regulatory framework.
Currently, we regulate and supervise banks under the Banking (Prudential Supervision) Act 1989. We also regulate and license Non-bank Deposit Takers (NBDTs) under the Non-bank Deposit Takers Act 2013 and work with the trustee companies that supervise them. From 2028, it is intended that both Acts will be superseded by the DTA.
A proportionate approach
In March 2024, we published the first statutory document under the DTA – the Proportionality Framework. The Proportionality Framework sets out how we take a proportionate approach when developing prudential standards for licensed deposit takers under the DTA. You can find the Proportionality Framework and related consultation materials below.Rather than taking a ‘one-size-fits-all’ approach to prudential regulation, we consider differences in the deposit-taking sector. This includes the size and nature of the business. We also balance the costs and benefits of regulation with different deposit takers. This means the public can benefit from a safe, sound and stable deposit-taking sector and one that can be diverse, innovative and inclusive.
To develop prudential standards, the Proportionality Framework groups locally-incorporated licensed deposit takers into 3 groups based on their total asset size, with a fourth group for overseas licensed deposit takers (branches).
Read our Proportionality Framework for developing prudential standards (PDF, 332KB)
You can find consultation information, submissions and our responses on our consultation page.
Proportionality Framework consultationPrudential standards
Prudential standards are the secondary legislation provided for under the DTA. The standards will replace over 800 pages of the banking handbook, conditions of registration, Orders in Council and NBDT regulations.
Comprising core and non-core standards, they set the prudential requirements for deposit takers with the aim of protecting and promoting the stability of the financial system. The currently anticipated standards and their approximate timelines are listed in the table below.
Crisis management of deposit takers
Crisis management is how the Reserve Bank, deposit takers and other relevant stakeholders respond to avoid significant damage to the financial system. The responses cover both recovery and resolution.
The DTA modernises New Zealand’s crisis management regime for deposit takers in line with international best practice.
We are implementing a new crisis management regime in the DTA. It includes updating our existing policies and development of new standards on crisis management.
Between 2024 – 2028, we will be consulting in stages on our ongoing policy development.
