Bank disclosure down, non-bank disclosure up
Disclosure requirements for banks are likely to reduce significantly while non-bank deposit takers will have to prepare for formal disclosure requirements, the Reserve Bank says.
Friday, November 12th 2010, 8:28AM
by Sophia Rodrigues
The Reserve Bank said, in its financial stability report, that it is currently working with the Ministry of Economic Development to develop specific disclosure requirements for non-banks and expects these requirements to be in place in early 2011.
It didn't indicate what the specific requirements will be but said it will include norms related to risk management programme and credit ratings.
"Once prudential requirements for the NBDT sector come into force, formal disclosure requirements are required to reinforce market discipline around the prudential requirements," the RBNZ said.
A number for prudential requirements for the NBDT sector will come to being on December 1. These include liquidity regulator, capital ratio requirements, governance requirements, and limits on related party exposures.
In case of banks, the RBNZ issued a consultation document in August to review their disclosure requirements. The outcome of the discussion will be published by the end of the year and the changes will take effect for the disclosure period ended March 31, 2011.
The main proposed changes include removing the key information summary and reducing disclosure requirements for off-quarters, removing duplications or inconsistencies between the RBNZ disclosure regime and the New Zealand IFRS, and changing half-year financial statements from being prepared on an annual basis to be on an interim reporting basis.
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