Bank disclosure down, non-bank disclosure up

The Reserve Bank said, in its financial stability report, that it is currently working with the Ministry of Economic Development to develop specific disclosure requirements for non-banks and expects these requirements to be in place in early 2011.

It didn't indicate what the specific requirements will be but said it will include norms related to risk management programme and credit ratings.

"Once prudential requirements for the NBDT sector come into force, formal disclosure requirements are required to reinforce market discipline around the prudential requirements," the RBNZ said.

A number for prudential requirements for the NBDT sector will come to being on December 1. These include liquidity regulator, capital ratio requirements, governance requirements, and limits on related party exposures.