Source: Reserve Bank of New Zealand
The Reserve Bank is working with ANZ Bank New Zealand Limited (ANZ NZ) to gain assurance the areas of historical non-compliance with the Reserve Bank’s capital adequacy requirements are being addressed.
In June 2019 the Reserve Bank requested two reports from ANZ NZ under section 95 (s95) of the Reserve Bank of New Zealand Act 1989. ANZ NZ engaged Deloitte, with the approval of the Reserve Bank as per s95, to prepare the reports. The Reserve Bank required a summary of each report to be published.
The first report, on ANZ’s Director Attestation and Assurance framework, was published in December 2019. As a result of this first report, the Reserve Bank issued a further s95 notice requiring an external party to confirm by mid-2021 that ANZ has implemented all of the recommendations.
The latest s95 report, assessed ANZ NZ’s compliance with the Reserve Bank’s capital adequacy requirements. This report identified some of instances of non-compliance indicating that historically there was not sufficient rigour around ANZ NZ’s processes to ensure compliance.
The Reserve Bank will work with ANZ NZ to gain assurance the areas of non-compliance are addressed, Deputy Governor and General Manager of Financial Stability Geoff Bascand says.
“We have discussed the findings of the latest section 95 report with ANZ. They have been forthcoming with their desire to address this and we are confident that ANZ will resolve this matter without issue.
“ANZ remains sound and well capitalised.”