FILE PHOTO: A security guard stands in the main entrance to the Reserve Bank of New Zealand located in central Wellington, New Zealand, July 3, 2017. Picture taken July 3, 2017. REUTERS/David Gray
November 19, 2019
WELLINGTON (Reuters) – New Zealand’s central bank said on Tuesday it was stepping up monitoring of Bank of New Zealand (BNZ) after identifying weaknesses in the bank’s capital calculation processes.
The Reserve Bank of New Zealand (RBNZ), which supervises the banking sector, said BNZ, whose parent company is National Australia Bank Ltd <NAB.AX>, had made three capital calculation errors.
“It is now required to increase the risk weight floor of its operational risk capital model from $350 million to $600 million capital,” the RBNZ said in a statement.
(Reporting by Charlotte Greenfield; Editing by Clarence Fernandez)
