RBNZ calls for con­sul­ta­tions

New Straits Times - - Business -

WELLING­TON: The cen­tral bank called yes­ter­day for con­sul­ta­tions on its re­view of cap­i­tal re­quire­ments to counter risk to the coun­try’s bank­ing sec­tor, say­ing it re­tained an open mind about any new rules.

“How­ever, in broad terms our aim is to agree a cap­i­tal regime that main­tains a very high level of con­fi­dence in the sol­vency of the bank­ing sys­tem, while avoid­ing un­nec­es­sary eco­nomic in­ef­fi­ciency,” said the Re­serve Bank of New Zealand (RBNZ).

RBNZ deputy gov­er­nor Grant Spencer an­nounced the year­long re­view last month to en­sure reg­u­la­tions were ap­pro­pri­ate in light of in­ter­na­tional rules and the high risk of any down­turn in the prop­erty sec­tor to New Zealand’s fi­nan­cial sys­tem.

In­ter­na­tion­ally, reg­u­la­tors have de­vel­oped new rules known as “Basel III” to make the global bank­ing sys­tem more re­silient fol­low­ing the 2008 cri­sis. Reuters

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