RBNZ bank capital proposals should be assessed by the Productivity Commission
NZ Herald op-ed Louise Tong, INFINZ Chair
New Zealand's Reserve Bank (RB) is proposing to increase the total minimum capital requirement from the current 10.5 per cent to 18 per cent for banks that are identified as 'systemically important' (essentially the big four subsidiaries of Australian parent banks) and 17 per cent for all other banks.
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The proposals could have significant implications for the cost and availability of credit.
The Reserve Bank has encouraged non-banks in particular to have their voices heard.
Submissions are due by 3 May. To help you do that, we are happy to assist by:
Jim McElwain, INFINZ (Cert) I Executive Director, Institute of Finance Professionals New Zealand Inc.