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Oversight of banks

Standards and requirements for banks

This section covers the main prudential requirements for banks incorporated and registered in New Zealand.

Published date:

Capital requirements for banks

Locally incorporated registered banks in New Zealand are subject to conditions of registration requiring them to maintain a minimum level of, and quality of, capital relative to their risk-weighted assets.

Capital requirements for banks
Capital requirements for banks

Liquidity policy for banks

This page sets out the minimum prudential standards we impose on registered banks to address their degree of liquidity risk and approach to managing it.

Liquidity policy for banks
Liquidity policy for banks
Aerial view of city intersection

More standards and requirements for banks

Macroprudential policy

Macroprudential tools

This page describes the macroprudential tools or instruments we can use to reduce the risk of 'boom-bust' cycles in the financial system and how we implement them.

Loan-to-value ratio restrictions

A loan-to-value ratio (LVR) is a measure of how much a bank lends against residential property, compared to the value of that property.

Timeline for loan-to-value ratio restrictions

This page provides a timeline of our actions and consultations relating to loan-to-value (LVR) restrictions from June 2013 to the present.

Macroprudential indicators

We monitor a range of macroprudential indicators to inform our assessment of financial system risk and help us determine whether a policy response is needed.