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


RBNZ accredits four NZ banks under Basel II Accord

Date 10 December 2007 Time
Embargoed to 12 noon

RBNZ accredits four NZ banks under Basel II Accord

The Reserve Bank of New Zealand today announced that four banks have been accredited to adopt the internal models approach under the Basel II banking supervisory regime.

Reserve Bank Deputy Governor Grant Spencer said the banks that have been accredited to use internal models for credit and operational risk from the first quarter of 2008 are ANZ National Bank Limited, ASB Bank Limited, and Westpac New Zealand Limited. In addition, the Bank of New Zealand has been accredited to use internal models for operational risk from the first quarter of 2008. The Bank of New Zealand is expected to apply for accreditation of its credit risk models during 2008.

"A key feature of the Basel II regime is that it increases the sensitivity of capital requirements to key bank risks, particularly credit risk," Mr Spencer said.

Mr Spencer said that the banks that have been accredited are now able to calculate regulatory capital with their respective internal models. The other three locally incorporated registered banks in New Zealand did not apply for accreditation, and will operate on a 'standardised' Basel II approach for calculating regulatory capital.

Mr Spencer added that in order for the four internal models banks to retain their accreditation status they must comply with a number of accreditation requirements.

"Some of these requirements are of a transitional nature, recognising that we have some way to go to fully embed the Basel II regime. In particular, there will be a transitional requirement to maintain capital at a level no less than 90 percent of the previous 'Basel I' capital requirement.

"Other requirements relate to specific risk parameters to be used in some risk models, and improvements to be made to the banks risk models over time."


© Scoop Media

Business Headlines | Sci-Tech Headlines


Energy Resources Aotearoa: New Law On Decommissioning Could Be Costly Overkill
A new law on decommissioning oil and gas fields passed by Parliament today has good intentions but is overkill, according to Energy Resources Aotearoa. "We strongly support operators taking responsibility and paying the costs for decommissioning, which is what all good operators do," says chief executive John Carnegie... More>>

Commerce Commission: News Publishers’ Association Seeks Authorisation To Engage In Collective Bargaining

News Publishers’ Association of New Zealand Incorporated seeks authorisation and provisional authorisation to engage in collective bargaining with Facebook and Google. The Commerce Commission has received applications from News Publishers’ Association of New Zealand Incorporated (NPA) seeking authorisation and provisional authorisation on behalf of itself... More>>

Reserve Bank: MPC Continues To Reduce Monetary Stimulus
The Monetary Policy Committee agreed to raise the Official Cash Rate (OCR) to 0.75 per cent. The Committee agreed it remains appropriate to continue reducing monetary stimulus so as to maintain price stability and support maximum sustainable employment... More>>

PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>

NZ Skeptics Society: Announce Their 2021 Awards, And Dr Simon Thornley Wins The Bent Spoon

Every year the New Zealand Skeptics presents its awards to people and organisations who have impressed us or dismayed us, and this year it’s been hard to pick our winners because there have been so many choices!.. More>>

REINZ: Sales Volumes Leveling Out

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 44 fewer lifestyle property sales (-2.6%) for the three months ended October 2021 than for the three months ended September 2021... More>>

BNZ: Auckland Retail Card Spending Bounces Back In Step Two
Bank of New Zealand (BNZ) card spending data released today shows one week of retail therapy at Alert Level 3 Step 2 has been enough to raise card spending in Auckland to levels greater than before the Delta lockdown... More>>