The Reserve Bank of New Zealand has opened two consultations as part of its Deposit Takers Act prudential framework: a crisis preparedness package for handling a deposit taker failure, and the third and final tranche of draft standards and guidance to be issued in 2027. The crisis preparedness proposals are intended to support the orderly resolution of a failing deposit taker, preserve critical customer services and avoid the use of public funds. The crisis preparedness package is at the policy consultation stage and would require recovery planning and resolution pre-positioning so deposit takers have contingency plans and internal capabilities for severe financial stress. It also proposes design requirements for loss-absorbing capacity instruments for domestic systemically important banks, referred to as Group 1 deposit takers, following the 2025 review of key capital settings. Alongside this, the tranche 3 exposure drafts cover capital, internal models for deposit takers using the Internal Ratings-Based model, operational resilience, outsourcing, disclosure and related party exposures. The package supplements the Depositor Compensation Scheme and other standards developed under the Deposit Takers Act. Both consultations run for 12 weeks, with submissions due by 5 p.m. on Friday 11 September 2026. All Deposit Takers Act standards other than crisis preparedness are due to be issued by 31 May 2027 and take effect on 1 December 2028. Crisis preparedness standards will be issued separately in 2028 and take effect in 2029, with implementation timeframes potentially varying by requirement.
Reserve Bank of New Zealand2026-06-17
Reserve Bank of New Zealand consults on deposit taker crisis preparedness and final tranche of six DTA draft standards
The Reserve Bank of New Zealand has launched a policy consultation on crisis preparedness for deposit takers and a separate consultation on the final tranche of six Deposit Takers Act draft prudential standards. The crisis package would require recovery planning, resolution pre-positioning and loss-absorbing capacity instrument design for Group 1 deposit takers. Non-crisis standards are due by 31 May 2027 and take effect on 1 December 2028, while crisis preparedness standards will follow in 2028 and take effect in 2029.