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ANZ no longer allowed to asses its own capital requirements - RBNZ


Reuters


May 17 (Reuters) - New Zealand's central bank revoked Australia and New Zealand Banking Group's local unit's ability to autonomously assess its risk capital requirement on Friday, citing persistent shortcomings.

ANZ Bank New Zealand Ltd is now required by the Reserve Bank of New Zealand (RBNZ) to use the standardised approach for calculating operational risk capital, and will have to raise its minimum capital by about 60% to NZ$760 million ($496.4 million).

"ANZ's directors have attested to compliance despite the approved model not being used since 2014," RBNZ's Deputy Governor Geoff Bascand said in a statement.

ANZ's New Zealand unit did not immediately respond to a request for comment.

ANZ is one of four big banks in New Zealand that are accredited by the Reserve Bank to use their own risk models in calculating their regulatory capital requirements.

($1 = 1.5312 New Zealand dollars)






This article appears in: World Markets , Stocks , Economy , Banking and Loans



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