26 June 2024 – On 30 June 2024, revisions to disclosure requirements for New Zealand incorporated registered banks come into effect. We have updated the ‘working copy’ of the disclosure Order in Council that we maintain on our website. See the revised working copy here: (ref. https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=24d22b2aec&e=f3c68946f8 )
The main change is the addition of ‘dual reporting’ by the banks that are accredited to use their own internal ratings-based models to calculate capital requirements for credit risk. The purpose of dual reporting is to improve transparency around these banks’ credit risk models. It requires them to disclose their actual capital requirements using their internal models, alongside the non-modelled equivalent capital requirements (under the ‘standardised approach’ used by other banks).
The changes also include some additional disclosure relating to counterparty credit risk arising from derivative contracts, and other minor changes in the disclosure of capital adequacy and connected exposures. These follow recent changes in the corresponding prudential policy requirements.
These changes will be reflected in bank disclosure statements with balance dates of 30 June 2024 and thereafter.
More information
Disclosure requirements – Information on the disclosure requirements for registered banks and supporting information https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=4e403f837b&e=f3c68946f8
Capital Review dual reporting and other changes to bank disclosure statements https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=bfafe3d6aa&e=f3c68946f8
