Statutory provisions relating to NBDTs
were later carved out into a separate Act--the NBDT
The number of banks and NBDTs
and new market entrants into the New Zealand banking sector are examples of the choice available to depositors and other investors.
Insurers and NBDT
relationships are emerging, characterised by high levels of familiarity, but lower levels of trust.
However, it introduces a licensing requirement for NBDTs
, which includes the requirement for an NBDT
to have suitable directors and senior officers.
Key parts of the consultation document include fine-tuning the definition of what constitutes an NBDT
and ensuring the appropriate supervisory arrangements are in place for the sector.
Due to their smaller sizes and the lower levels of interconnectedness, the insurance and NBDT
sectors are not of the same systemic importance as the banking sector.
The discussion document's main proposals include requiring NBDTs
to disclose a standardised set of prudential information and for these disclosures to be updated six-monthly.
However, in the case of the NBDT
sector, trustees act as the supervisors, unlike for banks and insurance companies where the Reserve Bank is both regulator and supervisor (see box 1).
Deputy Governor Grant Spencer said these proposals would give the Bank a number of powers covering licensing, fit and proper person requirements for directors and senior office holders of NBDTs
, the ability to place restrictions on changes of ownership, as well as distress and failure management.
They outline the matters that an NBDT
and trustee should consider in setting quantitative liquidity requirements," Mr Spencer said.
The consultation paper and information on the NBDT
prudential regulatory regime can be accessed on the Bank's website (www.
The Reserve Bank Act requires the Bank to review the NBDT
regime, including the role of trustees within four years.