Submissions are currently open on the Reserve Bank of New Zealand's (RBNZ's) consultation paper regarding the disclosure requirements applying to all New Zealand registered banks in line with the introduction of the Basel III capital adequacy changes coming into effect at the beginning of 2013. The paper sets out two broad options.
The first is an amendment of the existing capital adequacy disclosure requirements to account for the new categories of capital and minimum ratios introduced under the Basel III framework. These include specific mention of conversion and write-down features as well as whether an instrument is subject to phase-out under transition arrangements. Disclosure would be required in six-monthly periods with information on any instruments issued since the previous full or half year reporting date included in off-quarter disclosure statements.
The second is the implementation of the rules issued by the Basel Committee in full, including the full detail of the Basel III disclosure rules. Whilst this alternative may be more onerous, there may be compliance efficiencies for those banks whose overseas parent banks will be subject to the same rules.
Submissions close 14 December 2012 – a copy of the paper is available here.