RBNZ shrugs off big-bank suggestions on capital stacks

RBNZ lays out detail of capital stacks. (Image: Getty)

Wed, 17 Dec 2025

Reserve Bank of New Zealand has decided new capital-stack settings for the nation’s biggest deposit takers, shrugging off an alternative suggestion from several of the Australian-owned banks.The Reserve Bank of NZ (RBNZ) has decided that Group 1 lenders will have a capital stack comprising 12.0% Common Equity Tier 1, with 3.0% Tier 2 and 6% loss-absorbing capacity (LAC), the central bank said today.This is consistent with the so-called Option 2 canvassed in the regulator's six-week consultation, which ended in October. Additional...

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