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RBNZ announces review of bank disclosure regime; aims to reduce compliance costs

RBNZ announces review of bank disclosure regime; aims to reduce compliance costs

The Reserve Bank of New Zealand has announced a review of bank disclosure rules to reduce compliance costs.

Releasing a consultation document, Reserve Bank Deputy Governor Grant Spencer said a key objective of the review is to reduce compliance costs associated with current disclosure requirements first introduced in 1996.

“We also want to better match the needs of the key stakeholders,” Spencer said.

“This review is likely to significantly reduce and modify the Reserve Bank’s disclosure requirements, while introducing other ways of collecting information for prudential purposes.”

Every quarter banks are currently required to publish a high-level Key Information Summary (KIS); a detailed General Disclosure Statement; and a Supplemental Disclosure Statement containing background documents.

Banks also face other disclosure requirements through the Financial Reporting Act 1993 and the Securities Act 1978.

Spencer said the existing disclosure regime was designed to improve market discipline on the banks, to increase the public’s financial awareness, and to strengthen directors’ responsibilities.

Fedback suggested that the current disclosure requirements may not be the most effective way of meeting these objectives, the Reserve Bank said.

The consultation document put forward two preferred options for change in the bank disclosure regime, it said.

However, the Reserve Bank does not want to be prescriptive and welcomes ideas on alternative approaches, Spencer said.

We welcome comment and insight from our readers.  We'll update this article further once looking at the consultation document. Your view?

Click here to see the document.

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