Bank capital rules delayed until 2022
The RBNZ's strict new capital rules have been pushed back from July next year to July 2022. They were originally set to come into effect this year.
The central bank said a delay of the capital adequacy regime would give banks “continued headroom to respond to the effects of the Covid-19 pandemic and to support the economic recovery”.
The Reserve Bank said the decision would help to “cushion the initial economic blow of Covid”, and increase confidence in the financial system.
The capital rules will require NZ banks to store about $20 billion in new capital, $11 billion of equity and $9 billion in preference shares.
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