Reserve Bank capital review: decision date set
The RBNZ has confirmed the date for its final decision on whether to increase banks' capital buffers.
The central bank's proposals could force banks to increase risk weighted capital from 8.5% to 16%.
The proposals are designed to strengthen the New Zealand banking system and prevent the risk of another financial crisis impacting the country.
Yet the big four banks, likely to take the biggest hit from the new rules, have voiced opposition. Westpac believes they could add $6,000 a year to the average mortgage, as banks hike rates to pay for the capital buffer.
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