Review of key capital settings

We now consider it an appropriate time to reassess key capital settings. There have been changes in the legislative and broader environments since we last reviewed capital requirements between 2017 and 2019. Stakeholders have 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 are assessing 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. 

Feedback received to the consultation paper will inform our decision making on capital settings, alongside a cost and benefit analysis and final reports from independent international experts.  

We intend to make final decisions by the end of 2025.  

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.