New legislation for regulation of non-bank deposit takers
This article provides a broad overview of the regulatory framework for non-bank deposit takers and the role of the Reserve Bank of New Zealand as the sector’s prudential regulator. This new responsibility is embodied in the amendments made to the Reserve Bank of New Zealand Act and passed by Parliament in September 2008. The new regime requires non-bank deposit takers to comply with minimum prudential standards to be issued by the Reserve Bank. These standards will comprise the core prudential regime for the sector, and include credit rating, capital, and liquidity requirements, and restrictions on related party exposures.