'Idiosyncratic' NZ regulator hikes tier one needs

Filipe Frazao/gustavofrazao - stock.adobe.com

The Reserve Bank of New Zealand has unveiled the latest plank of its highly unusual approach to bank capital regulation. Under the proposed changes, the four large subsidiaries of Australian banks that operate in the country will have to raise billions of tier one capital and will be able to rely on loss-absorbing debt instruments far less than peers in other jurisdictions.