The Reserve Bank of New Zealand published its response to submissions on three of the four core prudential standards under the Deposit Takers Act 2023, setting out the requirements deposit takers will need to meet to be licensed. The package covers liquidity requirements, prudential disclosure to the market, and data and disclosure obligations linked to the Depositor Compensation Scheme. Public consultation on the proposed core standards (run from May to July 2024) attracted 26 submissions from banks, non-bank deposit takers and industry groups. The Reserve Bank said it is making changes following industry engagement to support a more proportionate approach, reduce compliance costs and improve regulatory efficiency, against the backdrop of the Act’s move to a single framework for banks and non-bank deposit takers once fully in force. The response to submissions on the fourth core standard, the capital standard, will be published later. The Reserve Bank cited a significant volume of submissions and announced a more comprehensive review of key aspects of deposit takers’ capital settings, including matters raised in the Finance and Expenditure Committee inquiry into banking competition.
Reserve Bank of New Zealand 2025-05-01
Reserve Bank of New Zealand responds to consultation on liquidity, disclosure and Depositor Compensation Scheme standards and defers capital standard
The Reserve Bank of New Zealand released its response to submissions on three core prudential standards under the Deposit Takers Act 2023, detailing requirements for licensing, liquidity, and disclosure obligations. Changes aim to enhance regulatory efficiency and reduce compliance costs, with a separate response on capital standards forthcoming.