The Reserve Bank has released new corporate governance requirements for registered banks.

In June 2010, the Reserve Bank issued a consultation paper on corporate governance, which was aimed at strengthening the independence of locally-incorporated banks. It has now adapted those proposals in response to feedback.

Key changes to the existing corporate governance regime include:

  • imposing a minimum board size of five;
  • requiring at least half of the board to be independent and at least half of those independent directors to be resident in New Zealand;
  • tightening the definition of an "independent" director; and
  • providing guidelines around the individual and collective knowledge and expertise required from bank boards.

To view the new policy document, click here.