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Source: MIL-OSI Submissions

Source: Reserve Bank of New Zealand

The Reserve Bank has published on its website updated versions of two Banking Supervision Handbook documents –
•   “Statement of Principles – Bank Registration and Supervision” (BS1); and
•   “Outsourcing Policy” (BS11) (revisions to the new policy originally issued in September 2017).

The changes to BS1 update the standard wording of conditions of registration that is set out in BS1, to reflect the temporary reduction in the minimum core funding ratio from 75% to 50%, and the tighter restrictions on distributions payable to holders of bank capital. 

The changes to BS11 are needed to extend the length of the transitional period for implementing the new outsourcing policy from 5 years to 6 years. 

Copies of the new documents and further background are available on the Handbook contents page.

Cavan O’Connor-Close
Manager Dynamic Policy
Financial System Policy & Analysis