JERRY MATEPARAE, Governor-General
Order in Council
At Wellington this 12th day of November 2012
Present:
His Excellency the Governor-General in Council in Council
Pursuant to section 81 of the Reserve Bank of New Zealand Act 1989, His Excellency the Governor-General, acting on the advice and with the consent of the Executive Council and on the advice of the Minister of Finance given in accordance with a recommendation of the Reserve Bank of New Zealand, makes the following Order.
Order
1 Title
This Order is the Registered Bank Disclosure Statements
(New Zealand Incorporated Registered Banks) Order (No 2) 2012 (Solo Capital) Amendment Order 2012.
2 Commencement
This Order comes into force on 31 December 2012.
3 Principal order amended
This Order amends the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order (No 2) 2012.
4 Clause 4
In clause 4(1), after the definition of "responsible person", insert:
"solo basis, for the information required for the registered bank on a solo basis under clause 16(2) of Schedule 11, has the same meaning as in Capital Adequacy Framework (Internal Models Based Approach) (BS2B)".
5 Clause 16 of Schedule 11 amended
(1) In clause 16(1) of Schedule 11, replace "Capital Adequacy Framework (Basel I Approach) (BS2)" with "Capital Adequacy Framework (Internal Models Based Approach) (BS2B)".
(2) In clause 16(2) of Schedule 11, replace "for the registered bank" with "for the registered bank on a solo basis".
(3) After clause 16(3) of Schedule 11 insert:
"(4) Despite clause 16 in subpart 1 of Part 2, a comparative figure that must be disclosed under subclause (3) for a date on or before 30 September 2012 may be the figure previously determined in accordance with Capital Adequacy Framework (Basel I Approach) (BS2) for the date on or before 30 September 2012.
"(5) If a comparative figure is determined in accordance with Capital Adequacy Framework (Basel I Approach) (BS2) and disclosed in reliance on subclause (4), the disclosure of the comparative figures must be accompanied by a statement that identifies the capital adequacy frameworks that have been used to calculate the respective comparative figures."
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MICHAEL WEBSTER, for Clerk of the Executive Council
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Explanatory note
This note is not part of the order, but is intended to indicate its general effect.
This Order comes into force on 31 December 2012 and amends the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order (No 2) 2012.
The purpose of this Order is to change the basis for the disclosure of solo capital adequacy ratios by New Zealand-incorporated banks that are subject to the internal models-based approach to capital adequacy. These banks will now be required to disclose their solo capital ratios calculated in accordance with "Capital Adequacy Framework (Internal Models Based Approach) (BS2B)" rather than "Capital Adequacy Framework (Basel I Approach) (BS2)".
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This Order in Council is administered in the Reserve Bank of New Zealand.