Banks, credit unions, non-banks — all under the same rules from 2028
The Reserve Bank has launched two simultaneous consultations marking the final regulatory push under the Deposit Takers Act 2023 (DTA) — the legislation that replaces New Zealand's existing banking and non-bank deposit taker rules with a single unified regulatory regime for the first time.
The consultations cover a crisis preparedness package and six draft standards spanning capital, operational resilience, outsourcing, disclosure, internal models, and related party exposures. Both are open for 12 weeks, with submissions due by 5pm on 11 September.
Planning for failure before it happens
The crisis preparedness package is designed to ensure that if a deposit taker fails, critical customer services can continue without recourse to public funds.
"The New Zealand financial system is resilient, and deposit takers are required to have strong capital buffers. Despite these safeguards, international experience shows us that failures can occur and we need to be prepared," said Angus McGregor (pictured), acting assistant governor financial stability, in a media release.
The proposed requirements include recovery planning and resolution pre-positioning — requiring banks to build contingency plans for severe financial stress before any crisis arises. Loss-absorbing capacity instruments will also be introduced for domestic systemically important banks.
"Having a crisis management framework in place before a failure occurs is essential for reducing economic damage and disruption for New Zealanders," McGregor said.
The RBNZ's May 2026 Financial Stability Report sets the context. Governor Anna Breman warned that "the global risk environment has worsened over the past six months, as conflict in the Middle East threatens world energy supply" — and that a slower recovery could make it harder for some households and businesses to meet loan repayments. Banks remain well capitalised, but the report makes clear why having a crisis framework ready before conditions deteriorate matters.
The final tranche of draft standards
Alongside the crisis preparedness consultation, RBNZ is seeking feedback on six draft standards covering capital requirements, internal ratings-based models, operational resilience, outsourcing arrangements, disclosure, and related party exposures — the third and final tranche of DTA draft standards for 2026. All DTA standards except those relating to crisis preparedness are scheduled to be issued by 31 May 2027 and take effect on 1 December 2028. Crisis preparedness standards follow separately, issued in 2028 and taking effect in 2029.
From banks to credit unions: what the DTA means in practice
The DTA applies to every institution that takes deposits — not just the major banks. Non-bank lenders previously regulated under the separate Non-bank Deposit Takers Act 2013 will be subject to the same prudential standards as banks under the new regime, which is the most practically significant aspect of the reform for advisers who place clients with credit unions, building societies, and non-bank lenders.
Recovery planning obligations and loss-absorbing capital requirements for major banks will shape lender risk profiles over the medium term — raising questions about compliance costs for smaller deposit takers, product appetite changes, and how new capital settings might affect LVR and DTI policy.
The framework is also designed to be pro-competitive. RBNZ published Competition Assessment Guidelines in October 2025 ensuring competition is embedded in future prudential decisions, responding to the Commerce Commission's market study into personal banking.
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