To aid transparency of compliance with key bank prudential requirements, the Reserve Bank of New Zealand – Te Pūtea Matua has launched a public material breach register.
New Zealand registered banks are required by the Reserve Bank to meet a number of key prudential requirements including minimum capital levels, liquidity management and corporate governance. Banks are required to formally report breaches of these requirements to the Reserve Bank, Deputy Governor and General Manager of Financial Stability Christian Hawkesby says.
“The publication of the register collates material breaches from the banks we regulate in one place and aligns with our aim to be an open, transparent regulator,” Mr Hawkesby says.
Banks were advised in January 2021 that they would be required to perform a materiality assessment of all breaches, regardless of whether they were identified by the Reserve Bank, the bank in question, or a third party.
Once a breach is deemed to be material, it will be published on the material breach register on our website, and the respective bank will be required to disclose the breach in their next Disclosure Statement.
The banks that are currently featured on the register (as of today’s release) were compliant with the Reserve Bank’s liquidity and capital requirements as at 31 December 2021 (the date of our latest Bank Financial Strength Dashboard update).