The Reserve Bank of New Zealand has published near-final standards on liquidity, the Depositor Compensation Scheme, residential mortgage lending and incorporation outside New Zealand, alongside supporting guidance and licensing questions for existing regulated deposit takers. Reflecting consultation feedback, the documents advance the phased implementation of the Deposit Takers Act 2023 and are expected to receive only minor clarity and consistency changes before finalization in May 2027. The standards are due to take effect on Dec. 1, 2028. The liquidity standard sets a minimum 100% mismatch ratio and 75% core funding ratio, with a simplified 100% mismatch ratio for Group 3 deposit takers. The Depositor Compensation Scheme standard covers disclosure, depositor information and payout readiness, including 24-hour production of depositor files and single depositor views, plus annual testing and assurance. The lending standard governs loan-to-value and debt-to-income assessments and permits mortgage lending restrictions through licence conditions, while the incorporation standard generally limits overseas deposit takers to New Zealand assets of NZD 15 billion or less, less than 50% of total business and specified wholesale client activity. Licensing opens on June 1, 2027. Existing banks and non-bank deposit takers must apply under a streamlined process focused on requirements that change under the new regime, while new entrants must complete the full process. The Reserve Bank plans to publish four more near-final standards by the end of 2026 and issue all standards other than those on crisis preparedness by the end of May 2027.

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