RBNZ cracks down on Westpac over modelling breach
Central bank imposes capital penalty after uncovering failings related to use of internal models
The Reserve Bank of New Zealand has imposed sanctions on the New Zealand arm of Westpac, after finding the commercial bank had “materially failed to meet” its obligations relating to internal modelling.
Westpac is one of the large banks operating in New Zealand permitted to use the more advanced, internally modelled approach to determining its capital requirements. The RBNZ found it had failed to meet requirements around model governance, processes and documentation.
“This is very
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