We have set the bar high relative to global insurance standards due to New Zealand’s vulnerability to natural disasters and to promote public confidence in our insurers.15 Capital review In the case of banks we are currently reviewing the capital adequacy framework.
The aim of the capital review is to identify the most appropriate framework for setting bank capital requirements – the amount of capital banks have to absorb losses – taking into account both how our current framework has operated and international developments. There are several guiding principles.