RBNZ’s finalised capital proposals give industry clarity

The Reserve Bank of New Zealand’s (RBNZ) finalised capital proposals give the banking industry clarity, ANZ Bank New Zealand Limited (ANZ NZ) said today.

ANZ NZ Acting CEO Antonia Watson said the industry consultation process with the RBNZ was thorough.

“We welcome the conclusion of the RBNZ’s review,” Ms Watson said.

“While the increase in capital remains significant, we acknowledge that as a result of the consultation process there have been changes to the capital instruments and the transition period to the new regime.

“We agree with the RBNZ that having a sound and efficient financial system is critical to the economic well-being of all Kiwis - the debate was always about how far that went and how that cost would be shared.”

She said any changes would be implemented gradually, bearing in mind the market was competitive for lending.

The bank had already started preparing for the change. Of ANZ NZ’s $1.8b net profit after tax in FY19, approximately 80% had been kept in New Zealand as retained earnings in response to the proposals.

“We’ve been in New Zealand since 1840 and prospered as the country has grown. We’re here for the long haul and continue to aspire to be New Zealand’s best bank.”

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