RBNZ proposing tweaks to bank capital calculations

(Image: NZME)
The Reserve Bank of New Zealand (RBNZ) said it's considering changing how banks should apply risk weightings to their loans in calculating their capital requirements.RBNZ has already made a number of changes to its capital rules, including increasing the amount of capital banks have to hold with a seven-year phase-in period starting from July 1 this year and reducing the advantage the four major banks have enjoyed since 2008.“We are in the process of phasing in the capital review decisions from December 2019,” the central bank s...
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