Source: Reserve Bank of New Zealand
Deputy Governor Geoff Bascand announced, “We have extended the public submission date to May 17 for views on our proposal to increase minimum capital requirements for banks. The consultation process on this matter will now extend to approximately five months.”
“The Reserve Bank’s proposed bank capital changes aim to make bank failures less likely and ensure that bank shareholders have a bigger stake in their bank, so they absorb a greater share of losses their bank might face. This is our fourth consultation on the matter,” Mr Bascand said.
“We have received 42 submissions to date and are aware that many banks and organisations are on target for our initial May 3 submission date. We welcome this timeliness. A small number of banks and interested organisations have requested more time, which we also understand.”
“Given the importance of the issue we want to ensure everyone has an opportunity to deliver a well-considered submission. We remain open to information sharing so as to best make informed decisions,” Mr Bascand said.
Submissions will be made public after consultation closes. Final decisions are expected to be communicated in the third quarter of 2019.