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

© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


New Bill Introduced: GST On Online Services

These measures are an important first step in the Government’s efforts to deal with increasing volumes of online services and other intangibles purchased from overseas suppliers that should, under New Zealand’s tax rules, be subject to GST. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news