RBNZ signals U-turn on bank capital requirements

The Reserve Bank of New Zealand is preparing to backtrack on its implementation of capital adequacy ratios championed by its recently departed governor, Adrian Orr.Appearing before a select committee inquiry into banking competition for the first time since Orr’s sudden exit on March 5, Reserve Bank of NZ’s (RBNZ) chair, Neil Quigley, cited a global “softening” in views about how much capital banks should be required to hold to ensure financial system stability.That push has been particularly evident in the United States...