RBNZ largely ignores 2017 PwC report on NZ banks' capital

Wed, 06 Mar 2019

By Jenny Ruth March 7 (BusinessDesk) - A 2017 paper by accounting firm PricewaterhouseCoopers suggests New Zealand’s major banks already effectively hold more capital than the Reserve Bank wants them to hold in the future. That paper was essentially rubbished by a Reserve Bank official at the time in a three-page memo, but the central bank has never conducted any detailed analysis of its conclusions. Nevertheless, the Reserve Bank is now proposing to double the minimum amount of tier 1 capital that the four major banks have to hold fro...

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