RBNZ proposes to ‘almost double’ capital requirements
Central bank advocates shareholders bear greater risk to incentivise good management
The Reserve Bank of New Zealand opened a consultation today (December 14) on a proposal to “almost double” the minimum capital requirements banks must comply with.
The central bank says it won’t apply the same increase to all banks. The actual implementation will depend on the existing levels of capital, how much extra capital individual banks choose to hold above the minimum, and their size. The RBNZ estimates the increase would range from 20% to 60%.
The increase would make a considerable
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