RBNZ Proposes Reducing Capital Requirements for Deposit Takers

The Reserve Bank of New Zealand (RBNZ) is proposing to reduce the minimum capital requirement for deposit takers and has begun consultations. The central bank said on Monday that one key policy option is to lower the minimum capital requirement to NZ$5 million (US$2.93 million), down from NZ$30 million. This reduces barriers to entry,” the statement said, as reported by Reuters. It is noted in the consultation document that any shift in regulation is not expected to cause significant economic change. The current, rising capital requirements were announced in 2019 and are being brought in slowly, with full implementation not expected before 2028. “It’s essential we strike the right balance — protecting depositors and the wider economy, while supporting competition and economic efficiency,” said RBNZ Governor Christian Hawkesby.