Capital rules about to hit
It is understood the draft regulations and recommendations from the Reserve Bank of New Zealand (RBNZ) regarding NBDT capital requirements have almost been finalised and should be in place by late June or early July.
Under the proposals released last December NBDTs would be required to keep a minimum tier one capital level of 8%, or 10% if they were not rated by one of the three approved ratings agencies, Moodys, Fitch and Standard & Poor's.
A spokesperson for the RBNZ said the government received about 40 submissions on the NBDT proposals with three key themes emerging: concerns about the tier one capital requirements; what the transition path would be, and; a desire to see the risk weightings of the NBDT sector match those applied to regular banks.
The spokesperson said a roadshow was planned to start in the next two to three weeks to explain the details of the new regulations and the "economic rationale" to interested parties.
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