RBNZ steps up BNZ supervision after capital calculation breaches

By Jenny Ruth | Tue, 19 Nov 2019


The Reserve Bank says it has stepped up its supervisory monitoring of Bank of New Zealand after identifying weaknesses in the bank's capital calculation processes.RBNZ says it's also applying "precautionary adjustments" to BNZ's capital requirements, increasing the risk weight floor on its operational risk capital model from $350 million to $600 million.BNZ is owned by National Australia Bank and is one of the big four Australian-owned banks accounting for about 88 percent of New Zealand's banking system. Those banks have been allowed to use th...