The Reserve Bank of New Zealand announced on Wednesday that after evaluating the rules introduced in 2019, it will lower some capital requirements for the country's banking sector, but the overall requirements will still be higher than international standards. The proportion of primary capital required to be held by the four major domestic Australian banks will be reduced from 16% to 12%, but the secondary capital requirement will be raised from 2% to 3%, and they will need to have 6% internal loss absorption capacity. The total capital requirement for small banks will be reduced from 16% to 14%, but it is stated that these changes are “still relatively conservative compared to the international community.”

The Reserve Bank of New Zealand announced on Wednesday that after evaluating the rules introduced in 2019, it will lower some capital requirements for the country's banking sector, but the overall requirements will still be higher than international standards. The proportion of primary capital required to be held by the four major domestic Australian banks will be reduced from 16% to 12%, but the secondary capital requirement will be raised from 2% to 3%, and they will need to have 6% internal loss absorption capacity. The total capital requirement for small banks will be reduced from 16% to 14%, but it is stated that these changes are “still relatively conservative compared to the international community.”