RBNZ's 2019 Capital Review finds NZ banks meet increased requirements, improving resilience and financial stability.

The Reserve Bank of New Zealand (RBNZ) has published an assessment of its 2019 Capital Review implementation, which aimed to enhance the quality and quantity of bank capital. The assessment found that all New Zealand banks have met the increasing capital requirements, and higher capital is increasing banks' resilience to shocks, their capacity to absorb losses, and lifting financial stability. Capital requirements are gradually increasing to 18% of risk-weighted assets for the largest banks and 16% for smaller banks. The full impact of the Capital Review decisions will not be clear until 2028.

March 17, 2024
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