New regulations for Non-Bank deposit takers
The central bank has gazetted new regulations for non-bank deposit takers to come into effect on December 1.
The new regulations introduce minimum capital ratio requirements of 8% for firms with a credit rating and 10% for those without. It also sets out maximum lending exposures to related parties of 15% of their capital.
Reserve Bank Governor Deputy Governor Grant Spencer said "the regulations will serve to improve investor confidence, as well as promote improved risk management by deposit takers."
The regime also requires most deposit takers to have two independent directors and a non-executive chairman.
The Reserve Bank is developing policy recommendations for cabinet to consider which are expected to lead to a second bill, completing legislation for the NBDT sector. The proposed legislation will require all NBDTs to be licensed by the central bank, and introduce fit and proper person requirements for senior management positions and change of ownership regulations.
Brent King won't be back in new-look Dorchester: Baker
A new-look Dorchester Pacific will not have anything to do with former managing director Brent King, according to Grant Baker of major shareholder Bakery Business. When asked about his relationship with King and whether that would have any bearing on the future governance of the company, Baker told Wellington investors that firm's former head will not have a role with Dorchester if it secures support to get out of its deferred repayment plan.
Baker said he still held shares in King's investment vehicle, Investment Research Group, but in terms of King's involvement with Dorchester, "there's no connection," he said.
Bell steps down from Genava board
Independent director Phillip Bell has stepped from the board of Geneva Finance after joining the finance company when it listed on the NZX.
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