RBNZ review of non-bank deposit takers tabled

The Government has today tabled in Parliament the Reserve Bank’s review of the prudential regime for non-bank deposit takers, Finance Minister Bill English says.

The review, which was required after the Reserve Bank of New Zealand Amendment Bill (No 3) was enacted in 2008, considers whether any changes should be made to the Act as it relates to non-bank deposit takers.

“The review makes a number of recommendations and the Government will consider them over the next few months,” Mr English says.

“As the Reserve Bank notes, the rules for non-bank deposit takers are designed to promote a sound and efficient financial system, and to avoid damage to the system that could result from the failure on a non-bank deposit taker.

“Overall, the bank considers the regime has helped to reduce the likelihood of failure in the sector and encouraged sounder management of non-bank deposit takers following problems with several finance companies.”

The Reserve Bank’s review is available at:

http://www.rbnz.govt.nz/regulation_and_supervision/non-bank_deposit_takers/5475890.pdf