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

 

Pre-positioning for Open Bank Resolution

Pre-positioning for Open Bank Resolution

The Reserve Bank today released a consultation paper on the pre-positioning requirements that banks will be expected to comply with to fully implement the Open Bank Resolution (OBR) policy, as referred to by the Minister of Finance in his statement on 11 March 2011.

Open Bank Resolution is a long-standing policy option aimed at resolving a bank failure quickly, in such a way that the bank can be kept open for business, thus minimising stresses on the overall banking and payments system.

Reserve Bank Deputy Governor Grant Spencer said: “The OBR policy provides for continuity of core banking services to retail customers and businesses, while placing the cost of a bank failure primarily on the bank’s shareholders and creditors rather than the taxpayer.

“The global financial crisis highlighted the potentially enormous fiscal cost associated with supporting troubled banks. The government therefore needs OBR to be an operational and effective policy option for containing the cost of a bank failure, while not threatening the safety of the overall financial system.”

Banks are being consulted on the systems requirements that are needed to ensure the concept can be put into operation.

Mr Spencer said: “The design of major Reserve Bank prudential policies such as outsourcing and local incorporation will help to facilitate the implementation of OBR. The pre-positioning of banks’ internal systems represents the next stage in that implementation process.”

Submissions for the consultation paper close on 30 June 2011.

The consultation paper can be accessed on the Bank’s website http://www.rbnz.govt.nz/finstab/banking/.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Testing And Decontamination: New Standard On Meth Residue

Standards New Zealand has today released NZS 8510:2017 Testing and decontamination of methamphetamine-contaminated properties ... More>>

ALSO:

Mince, Etc: US Food Poisoning Lawyer At Conference

As New Zealand chefs, food experts, and MPI debate what constitutes a cooked beef burger, leading US food safety litigator Bill Marler, who made his name prosecuting the burger company responsible for a major E. coli outbreak, is keynote speaker at the Food Integrity Conference. More>>

ALSO:

Petya: New Ransomware Campaign Hits Worldwide

A new ransomware campaign known as Petya is affecting computer networks using Microsoft Windows. It was first seen affecting systems in the Ukraine, but is quickly spreading across other computer networks in Europe. More>>

ALSO:

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO: