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Discussion Document On Disclosure Requirements For Non-bank Deposit Takers Released

Contributor:
Fuseworks Media
Fuseworks Media

The Reserve Bank, in conjunction with the Ministry of Economic Development, today released a discussion document on proposed disclosure requirements for the non-bank deposit taking (NBDT) sector.

The discussion document's main proposals include requiring NBDTs to disclose a standardised set of prudential information and for these disclosures to be updated six-monthly.

Reserve Bank Deputy Governor Grant Spencer said disclosure of standardised prudential information will provide investors with a framework for analysing an NBDT's risks, and allow investors to compare risks between NBDTs more easily. This will improve market discipline, and confidence in the NBDT sector.

"The six-monthly frequency also aligns prudential disclosures with financial statements during the life of a prospectus," he said.

Other proposals in the Prudential Disclosure Requirements for Non-Bank Deposit Takers discussion document include: disclosures being subject to auditor reviews; and investors being notified when disclosures are updated as a result of material changes in an NBDT's circumstances. The discussion document (http://www.rbnz.govt.nz/finstab/nbdt/4377676.pdf, PDF 290KB) and information on existing prudential requirements (http://www.rbnz.govt.nz/finstab/nbdt/3857991.html) are available on the Reserve Bank website. The discussion document can also be accessed from the Ministry of Economic Development website (http://www.med.govt.nz/templates/ContentTopicSummary____45916.aspx).

Submissions close on 19 May 2011.

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