Rates Round Up

New regulations for Non-Bank deposit takers
The central bank has gazetted new regulations for non-bank deposit takers to come into effect on December 1.

The new regulations introduce minimum capital ratio requirements of 8% for firms with a credit rating and 10% for those without. It also sets out maximum lending exposures to related parties of 15% of their capital.

Reserve Bank Governor Deputy Governor Grant Spencer said "the regulations will serve to improve investor confidence, as well as promote improved risk management by deposit takers."

The regime also requires most deposit takers to have two independent directors and a non-executive chairman.