The Reserve Bank of New Zealand has issued a consultation paper proposing to expand permission to use the word 'bank' to all deposit takers that become licensed under the Deposit Takers Act 2023 (DTA), alongside a companion consultation on proposed regulations to clarify the prudential regulatory perimeter and support implementation of the new regime. The restricted words proposal seeks feedback on how 'bank', 'banker' and 'banking' should be used in an entity’s name or title once the DTA is fully in force, with the change potentially extending the 'bank' label to entities currently licensed as non-bank deposit takers. The perimeter consultation focuses on defining which types of entities will be subject to licensing and ongoing prudential supervision under the DTA, including whether certain types of fintechs should fall within scope. The DTA licensing process is currently expected to begin on 1 June 2027, and any changes to restricted-word use would take effect when the DTA fully commences, expected on 1 December 2028.
Reserve Bank of New Zealand 2025-09-30
Reserve Bank of New Zealand consults on expanding use of 'bank' to all Deposit Takers Act licensees and on regulatory perimeter rules
The Reserve Bank of New Zealand has released a consultation paper proposing to allow all licensed deposit takers under the Deposit Takers Act 2023 to use the term 'bank', alongside a consultation on regulations to define the prudential regulatory perimeter. The licensing process is anticipated to start on 1 June 2027, with changes to restricted-word use effective from 1 December 2028.