BRIEF-RBNZ Says Seeking Feedback On Policy Options For Mutual Banks To Issue Capital Instruments

Reserve Bank of New Zealand: * SEEKING FEEDBACK ON POLICY OPTIONS FOR MUTUAL BANKS TO ISSUE CAPITAL INSTRUMENTS

* CURRENTLY, MUTUAL BANKS IN NZ ARE NOT ABLE TO ISSUE INSTRUMENTS WITHOUT COMPROMISING THEIR MUTUAL STATUS * CONSULTATION PAPER SEEKS STAKEHOLDER’S VIEWS ON 2 POLICY OPTIONS TO PROVIDE MUTUAL BANKS WITH INSTRUMENT WHICH COULD QUALIFY AS CET1 CAPITAL

* PROPOSALS ARE BASED ON COMPARABLE INTERNATIONAL APPROACHES * IN FUTURE, MAY REVIEW NBDT CAPITAL ADEQUACY FRAMEWORK WHICH MIGHT CONSIDER SIMILAR ISSUES

* POLICY OPTIONS ADDRESS MUTUAL DEPOSITTAKERS REGISTERED AS BANKS, NOT INTENDED TO ADDRESS MUTUAL DEPOSIT-TAKERS REGISTERED AS NBDT Source text https://www.rbnz.govt.nz/news/2022/03/capital-instruments-for-mutual-banks-being-considered Further company coverage:

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