Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Implementation of Basel II capital rules

18 March 2005

Implementation of Basel II capital rules in New Zealand

The Reserve Bank of New Zealand today announced that it will allow both the "Internal Ratings Based" and "Advanced Measurement" Approaches in the implementation of the Basel II capital framework in New Zealand. The use of these approaches will be available only to banks that meet certain criteria.

Basel II is a new international framework for assessing whether banks are holding sufficient capital for the risks they are taking.

Reserve Bank Deputy Governor Adrian Orr said "The majority of banks in New Zealand are owned by banks in other countries. In particular, the four largest banks in New Zealand - Westpac, ANZ National Bank, BNZ and ASB - are all owned by banks based in Australia and supervised by the Australian Prudential Regulation Authority (APRA).

"We are working closely with APRA throughout the Basel II implementation process.

"This initiative is an important example of the Reserve Bank's enhanced home-host regulatory relationship with APRA, necessitating cooperation, coordination and mutual recognition of regulatory effort."

Posted on the Reserve Bank's website ( is a letter to all banks about the Reserve Bank's decision and a Terms of Engagement between the Reserve Bank of New Zealand and the Australian Prudential Regulation Authority. This establishes high-level principles for the cross-border implementation of Basel II in Australia and New Zealand.


© Scoop Media

Business Headlines | Sci-Tech Headlines


ScoopPro: Helping PR Professionals Get More Out Of Scoop has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>


Crown Accounts: Govt Books In Line With Forecasts

The Government’s financial statements for the four months to 31 October indicate the books are tracking along with Treasury’s Budget forecasts, Finance Minister Grant Robertson says. More>>


Expert Reaction: Ross Sea Region Marine Protected Area In Force

Sweeping new protections for Antarctica's Ross Sea will come into effect on Friday 1 December. After five years of debate, the marine protected area (MPA) was agreed in 2016 after a joint proposal by New Zealand and the United States... More>>