RBNZ gives banks seven years to increase capital buffers

Author: Adam Button | Category: Central Banks

RBNZ will go ahead with plans to force banks to raise capital ratios

  • Large banks will have to hold 18% in total capital (and 16% in tier one capital) versus current 10.5% minim
  • Smaller banks will have to hold 14% in tier one capital
This sounds steep but the average level of capital currently held by New Zealand banks is 14.1% so there's time. The window was also stretched to 7 years from 5 initially.

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