DTA Capital Standard risk weight changes

Overview

We are consulting on 6 targeted changes to the standardised credit risk weights used in our capital framework. Risk weights help determine how much capital a deposit taker must have. Riskier lending requires more capital, helping deposit takers absorb potential losses and supporting a resilient financial system.

The proposals are designed to make capital requirements more closely reflect the risks of different types of lending. They build on the broader changes made following the 2025 Review of key capital settings.

What we are proposing

The consultation paper seeks feedback on 6 proposals arising from the 2025 Review and subsequent work:

• a lower risk weight for credit card lending
• a revised approach to credit conversion factors
• more granular commercial property risk weights
• specific risk weights for eligible large domestic public infrastructure projects
• a look-through approach for eligible warehouse facilities
• a lower risk weight for reverse residential mortgages with low loan-to-value ratios.

The consultation paper includes draft wording for the Deposit Takers Act (DTA) Capital Standard to show how the proposals could be incorporated. We welcome feedback on both the policy proposals and the draft wording. Consulting on both now supports the timeline for issuing the Capital Standard. The draft wording does not indicate that decisions have been made on any of the proposals.

Read the consultation paper

Additional risk weights review consultation paper (PDF, 773KB)

Next steps

After consultation closes, we will analyse submissions, consider any additional evidence and make final decisions. Any resulting changes will be incorporated into the Capital Standard, which will be issued in late May 2027 and take effect in December 2028.