For large bank holding companies, the SCB would replace the fixed-for-all-times-and-for-allbanks 2.5 percent risk-based capital buffer with a firm-specific buffer based on the firm’s most recent stress test results. This would integrate our stress testing capital requirements with our point-in-time capital requirements. And as a result, the two separate capital frameworks would be combined into one.
And we will continue to use our strong international reputation and connectedness to work with other central banks, international financial institutions, and global regulators to further our understanding and, perhaps even, show leadership in places such as the South Pacific. Collaboration and a long-term vision are critical to growing the wider financial ecosystem that lies beneath the branches of Tāne Mahuta.