The Reserve Bank of New Zealand (RBNZ) has today announced that it will slow down most of its regulatory initiatives for an initial period of six months. This action is being taken to reduce the regulatory impost on financial institutions and free up Reserve Bank and industry resources to support the New Zealand economy and tackle the challenges created by COVID-19.
As announced on Monday 16 March, the RBNZ has deferred the start date of the increased capital requirements for banks by 12 months, which it expects will enable banks to provide an additional $47 billion of credit. The RBNZ was planning to publish exposure drafts of the revised policy documents to make those changes on 1 April 2020, and is also postponing that publication for the time being.
Of significance to the securitisation industry, one of the initiatives to be deferred is the finalisation of the standard terms for Residential Mortgage Obligations.
Read the full release from the RBNZ >