About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, November 20th, 6:13PM
rss
Latest Headlines

Expect more intrusive Reserve Bank: Bascand

The Reserve Bank is likely to become more "intrusive" in policing banks and insurance companies, according to deputy governor Geoff Bascand.

Thursday, June 27th 2019, 6:30PM 2 Comments

Banks and insurers will face more scrutiny from the central bank as part of a "more intensive supervisory approach", Bascand warned in a speech this week.

Bascand expects the central bank to continue with thematic reviews across the financial system. At the Financial Markets Law Conference in Auckland, Bascand promised a review into the use of actuaries in the insurance sector, as the RBNZ takes aim at new targets.

"In the near future there will be a thematic review on banks’ liquidity standards and another on the appointed actuary regime in the insurance sector," he said.  "We will continue to periodically stress test the banking system."

It comes as the RBNZ commences a review into insurance legislation and solvency standards.

The deputy governor gave a clear indication that the RBNZ will take firmer line on corporate misconduct and individual accountability.

"We will be more pro-active in holding directors and managers to account, particularly in areas where we have already identified shortcomings," Bascand told conference delegates.

Tags: Reserve Bank

« Insurers want public educationClient suffered heart attack before signing insurance contract »

Special Offers

Comments from our readers

On 28 June 2019 at 12:23 pm Murray Weatherston said:
Some philosophical questions
1. What are the problems these reviews are designed to solve?

2. Re (Life & health) Insurers solvency - I know the hypothesis of the MJW insurance report paid for by FSC and its members was that insurance companies paid too much commission and their solvency was at risk. But since then partners and Fidelity both had new investments by presumably intelligent investors (Blackstone and NZ Super Fund) which showed those investors certainly didn't think those companies at least were insolvent). Where are the signs that a life/health insurer might be suspect.

3. In the banking world. half a dozen unelected and almost unaccountable people have made a risk assessment for all of us that our community risk tolerance is as low as the 1 in 200 year event (on a standard normal distribution i think that's about 2.6 standard deviations from the mean when mean is 0 and std dev = 1). That's extreme risk aversion - but playing by those rules means banks have to hold more capital and interest rates paid by the bank will be lower and interest rate paid by borrowers to the bank). Where is any cost benefit assessment of such a policy setting.
Dare I suggest that if there is a 2.6 sigma event affecting a bank, there might be a lot of other problems.
On 3 July 2019 at 7:58 am I was wondering said:
Hilarious, I love these guys. Wasn't Hisco's behaviour serious enough for them to take action?
Serious enough to get him fired for what amounts to anauthorised spending. His spending was signed off for years so obviously condoned by the bank and the board including the current Chair.
This has brought the banking sector into further disrepute and would have, should have presented a perfect opportunity for action against the bank.
Just more blah, blah, blah.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Suncorp invests in wellbeing
Suncorp New Zealand has now invested a total of $20 million into wellbeing bonds as part of its focus on identifying sustainable investment opportunities that can deliver positive community outcomes.

AIA adds mental health support
AIA is boosting Vitality members’ donations to the Mental Health Foundation.

Major milestone for Cigna
Cigna, which acquired OnePath Life last year, is on the verge of reaching "a huge milestone".

Fidelity Life gets tick
Fidelity Life has been awarded the Accessibility Tick.

News Bites
Latest Comments
  • When is a client really a client?
    “And this subtle upgrade to the understanding of a complaint. Which changes the ISO definition from an expression of dissatisfaction...”
    2 days ago by JPHale
  • When is a client really a client?
    “Just released additional standards from the FMA. Record keeping potentially until 7 years after the death of the life...”
    2 days ago by JPHale
  • When is a client really a client?
    “@ReganT interesting that the two life advisers involved with the code working group discussion are the ones being argued...”
    2 days ago by JPHale
  • When is a client really a client?
    “In a previous reply I responded to the concept of payment as a trigger. I actually agree it’s not. While we don’t often...”
    3 days ago by regant
  • When is a client really a client?
    “Tash are you being deliberately obtuse? I didnt say you have to keep sending/giving disclosure every year, I said you have...”
    3 days ago by regant
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com