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

 

Statement from Westpac New Zealand

15 November 2017

Statement from Westpac New Zealand

The Reserve Bank of New Zealand (RBNZ) has informed Westpac New Zealand Limited (WNZL) of its decision following a review of WNZL’s compliance with aspects of its advanced internal ratings-based (IRB) accreditation. The decision applies only to WNZL and not to Westpac Banking Corporation (including its New Zealand branch).

The RBNZ has raised the bank’s minimum regulatory capital ratios, until issues identified in the review are remediated. In the case of the common equity capital ratio the minimum has been raised from 4.5% to 6.5%.

WNZL’s current regulatory capital ratios are sufficient to accommodate these increases with the total capital ratio at 30 September 2017 of 16.1% compared to the requirement to maintain the ratio above 15.1% until the issues are remediated.

The review focussed on the manner in which WNZL operated its credit risk rating system and the extent to which it sought required approvals from the RBNZ to changes in its credit risk models. WNZL is disappointed not to have met the RBNZ’s requirements in this area.

The RBNZ has acknowledged that WNZL’s capital has remained well above required regulatory levels.

WNZL has publicly disclosed its non-compliance with aspects of the RBNZ’s IRB framework in its Disclosure Statements since September 2016.

WNZL acknowledges the high standards required of an IRB accredited bank and has already taken several steps to address the issues raised in the review. WNZL looks forward to working with the RBNZ over the next phase of remediation work.

The new minimum regulatory capital ratios from 31 December 2017 will be 6.5% for Common equity Tier 1 capital, 8% for Tier 1 capital, and 10% for Total regulatory capital. As at 30 September 2017, WNZL’s respective minimum capital ratios were 4.5%, 6% and 8%. WNZL has also undertaken to maintain its total regulatory capital ratio above 15.1% during the period of remediation.

As at 30 September 2017, WNZL’s regulatory capital ratios were 11.1% for Common equity Tier 1 capital, 14.0% for Tier 1 capital, and 16.1% for Total regulatory capital.


Relevant Disclosure Statements

September 2016

December 2016

March 2017


June 2017


ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO: