While these cross country studies have not played much role in our analysis of determining what we think is the appropriate capital calibration for New Zealand, they do demonstrate that our proposals are by no means extreme. Instead, they move us towards our goal, expressed back in 2017, of capital requirements that are conservative relative to our peers.
In the final analysis, we must have a capital framework that is suited to the specific conditions and risks of New Zealand, not other jurisdictions. Conclusion Ensuring the soundness and efficiency of New Zealand’s banking system is a core responsibility of the Reserve Bank of New Zealand, and one to which we devote great time and effort.