The move aligns with the bank's aim to be an open, transparent regulator
The Reserve Bank of New Zealand has launched a public material breach register in a bid to aid transparency of compliance with key bank prudential requirements.
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RBNZ requires New Zealand-registered banks to meet a number of key prudential requirements, including minimum capital levels, liquidity management, and corporate governance. Banks are also required to formally report breaches of these requirements to the Reserve Bank, said Christian Hawkesby, RBNZ deputy governor and general manager of financial stability.
“The publication of the register collates material breaches from the banks we regulate in one place and aligns with our aim to be an open, transparent regulator,” Hawkesby said.
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In January 2021, banks were advised that they would need to perform a materiality assessment of all breaches, regardless of whether they were identified by the Reserve Bank, the bank in question, or a third party.
Once a breach is deemed to be material, it will be published on the material breach register on the RBNZ website, and the respective bank will be required to disclose the breach in its next disclosure statement.
RBNZ said the banks that are currently featured on the register were compliant with the Reserve Bank’s liquidity and capital requirements as of Dec. 20, when the bank released its latest Bank Financial Strength Dashboard update.
