Prudential requirements for NBDTs
On 3 September 2008, the Minister of Finance announced the passing of the Reserve Bank Amendment Act 2008. The Amendment Act established Part 5D of the Reserve Bank of New Zealand Act 1989 (the Act), which made the Reserve Bank the prudential regulator of non-bank deposit takers (NBDTs).
NBDTs are required to comply with a set of prudential requirements as prescribed in Part 5D of the Act.
The prudential requirements are broadly categorised into the following six areas:
Some institutions may be exempted from the NBDT regime. Under section 157G of the Act, the Reserve Bank can exempt a deposit taker, class of deposit takers, or trustee from compliance with all or any provisions of Part 5D, or any regulations made under Part 5D.