The Reserve Bank of New Zealand has launched its second and final consultation on the review of its policy for branches of overseas banks.?

The RBNZ is proposing:•    that all branches of overseas banks in New Zealand be restricted to engaging in wholesale business (that is with corporates, institutions and other wholesale investors), meaning they could not take retail deposits or offer products or services to retail customers; and•    to limit the maximum size of a branch to NZ$15 billion in total assets.

It proposes to continue to allow the dual registration of branches – provided the relevant subsidiary and branch are sufficiently separate, any identified risks are mitigated by specific conditions of registration, and dual-registered branches only conduct business with large wholesale customers (those with consolidated turnover greater than NZ$50 million). 

Submissions on the proposals should be made by 16 November, and there is a webinar for interested parties on Wednesday 31 August 2022. 

Final decisions on the review are expected early next year, with a proposed three-year transition period for full implementation.