Review of key capital settings

Results updated 17 Dec 2025

Between August and October 2025, we sought feedback on our policy proposals for key capital settings for deposit takers. These proposals were made as part of the 2025 review of key capital settings.

We received submissions from 43 submitters overall.

Final decisions on key capital settings were announced on 17 December 2025. These decisions were informed by feedback to the consultation paper, reports from independent external experts and analysis carried out by the Reserve Bank. 

Read the final decisions

At this stage we have only published high-level decisions and key supporting documents, including copies of the submissions received (where consent has been given to publish). We will publish a full summary of submissions with our detailed responses to the feedback in February 2026.

Download the submissions A (ZIP, 10.3MB)
Download the submissions B - G (ZIP, 6.15MB)
Download the submissions H - N (ZIP, 9.67MB)
Download the submissions O - Z (ZIP, 4.26MB)

Why we reviewed key capital settings

We considered it an appropriate time to reassess key capital settings. There had been changes in the legislative and broader environments since we last reviewed capital requirements between 2017 and 2019. Stakeholders had also expressed views that our bank capital requirements are unreasonably conservative and undermining competition and growth in the New Zealand economy. 

During this 2025 review, we assessed whether the Reserve Bank’s capital requirements for deposit takers are set at the appropriate level to support a stable financial system – one where resilient financial markets, institutions and infrastructures enable a productive and sustainable economy and ultimately promote the prosperity and wellbeing of all New Zealanders.  

Next steps

Decisions from the review will be incorporated into the Capital Standard in the Deposit Takers Act 2023 (DTA). We plan to consult on an exposure draft of the Capital Standard alongside other standards in 2026.

We intend to introduce some of these changes, particularly changes to risk weights, in 2026. We will consult on an Exposure Draft of changes to Banking Prudential Requirements as part of this.

We intend to consult on a transition path for introducing Loss-Absorbing Capacity requirements in 2026 alongside the Bail-in Standard.