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

 

Reserve Bank welcomes new responsibilities

3 September 2008

Reserve Bank welcomes new responsibilities

Today represents a significant step forward in helping improve the future resilience of New Zealand's non-bank financial sector Reserve Bank Governor Alan Bollard said today.

The Reserve Bank Amendment Bill (No 3) was passed today making the Reserve Bank the regulator of non-bank deposit takers. Dr Bollard said he is confident that the new legislation will provide a strong basis for confidence in the deposit-taking sector, which includes finance companies, building societies and credit unions.

The Bank's role will be to require information from trustees of deposit takers, to develop and enforce minimum prudential and governance requirements and to administer credit rating requirements.

"We are encouraging non-bank deposit takers to move towards adopting the new regulatory standards as soon as possible. Trustees will continue to be front-line supervisors of deposit takers, and we look forward to working proactively with trustees as they work towards a more enduring role in the sector," Dr Bollard said.

"Credit ratings from reputable rating agencies will play an important role in the new regulatory arrangements. Credit ratings assist depositors to compare the level of risk they are taking with the return they are getting when they invest in a deposit taker," commented Dr Bollard.

The Reserve Bank will engage with stakeholders, including deposit takers and trustees, in developing the regulations once the legislation has been enacted. The Bank will also work with the Securities Commission to revise and simplify public disclosure requirements for deposit-takers.

The Bank will be working to develop and introduce new regulations for the industry over the next two years. These regulations will introduce consistent standards for key risk areas such as financial strength (capital), access to cash (liquidity) and lending to associated parties. It is expected that these new rules will be introduced in 2010.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: