by Sophia Rodrigues
The policy is essentially maintaining the status quo but with an amendment on quantifying the liquidity requirement. It is also a far cry from liquidity policy for banks which are more stringent and prescribes liquidity and mismatch ratios.
The RBNZ said it will provide guidelines that can assist with the development of the quantitative liquidity requirement.
The policy was finalised after taking in to account submissions received to the draft policy which largely favoured maintaining a status quo or prescribing a measurement framework based on standard definitions from the RBNZ. The RBNZ believes the final policy will impose minimal cost on the industry while also allowing it to convey its view on good practice in the development of liquidity requirement.
The new liquidity requirement will commence on December 1 to coincide with the start date for the policy on minimum capital, related party exposure etc.
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