Kiwibank bonds' contribution to capital to decline

Thu, 17 Jun 2021

Kiwibank was already the bank with the lowest tier 1 capital at March 31 and the Reserve Bank's new capital rules which start coming into force from Oct 1 will make its position worse.Kiwibank was the only New Zealand bank whose common equity tier 1 capital (CET1) fell in the year ended March, sinking to 10.9% of risk-weighted assets from $11.8% a year earlier, while its total tier 1 capital was 11.9%.Kiwibank said it anticipates the new rules will trigger "a regulatory event" relating to its $150 million of perpetual subordinated...

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