RBNZ suggests eliminating minimum Tier 2 holding

New Zealand’s central bank proposes dramatically increasing Tier 1 to reduce resolution risk

Reserve Bank of Australia

The Reserve Bank of New Zealand has asked market stakeholders today (January 25) whether it should eliminate the Tier 2 capital requirements for commercial banks, while greatly increasing Tier 1 ratios.

The RBNZ is considering the measure as part of its plan to overhaul minimum capital ratios.

This is part of the wider public consultation the RBNZ opened on December 14 last year on its proposal to “almost double” minimum high-quality capital requirements. The central bank suggested increasing

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