Reserve Bank Recognises Kiwibank Capital Instruments

Reserve Bank Recognises Kiwibank Capital Instruments

10 August 2017 - The Reserve Bank of New Zealand has today issued a letter of non-objection in relation to the Kiwibank Bonds that, earlier this year, it considered were not compliant with its capital adequacy rules. This decision follows some changes made by Kiwibank to address the concerns raised by the Reserve Bank.

Kiwibank Chief Executive Paul Brock said he’s relieved that the issue is now resolved. “I’m delighted with this outcome, both for us and for our shareholders who supported us to ensure our capital position remained strong.”

In relation to the speculation that will arise around what will happen to the $247 million injection from shareholders, Mr Brock says that’s a decision for them to make. “Decisions on capital composition are a matter for our shareholders and the Kiwibank Board.”

ENDS

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