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In case you missed it…
The Reserve Bank of New Zealand (RBNZ) has released the first stage of public consultation on the Deposit Takers Act 2023. This includes proposals for the Proportionality Framework as well as the levies which seek to fund the Depositor Compensation Scheme (DCS).
Amongst the messages, it is key that the RBNZ is seeking to make prudential requirements simpler, not less, with prudential requirements strengthened for some classes of deposit takers.
“This will Not Represent an Overall Lowering of Prudential Standards. The framework will not represent an overall lowering of prudential requirements compared to existing regulatory requirements. There will be minimum standards to ensure the safety and soundness of each deposit taker.”
There is the opportunity to feed into the proposals, which is encouraged - not just for deposit-taking entities, but for consumers, who may ultimately find they carry the cost for the DCS in their interest rates.
