RBNZ proposes lower capital requirements for lenders
Key proposal would reduce minimum capital requirement to encourage new entrants
New Zealand’s central bank has proposed changes that include reducing minimum capital requirements for deposit-takers and changing the composition of capital these institutions are required to hold.
The Reserve Bank of New Zealand (RBNZ) said on August 25 that its proposals would “simplify the capital stack” and improve risk assessment procedures for different types of capital held by deposit-taking banks.
The RBNZ made the proposals after internal and external reviews into its capital
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