UPDATED: Bank disclosure rules up for discussion

Friday 6th August 2010

The Reserve Bank is reviewing the disclosure rules for banks to streamline the process and to ensure appropriate information is provided to the market.

The central bank is looking to cut the compliance costs associated with its disclosure rules and is considering dropping the Key Information Summary, a quarterly update on a bank’s financial condition that has been a requirement for 14 years.

“We do not believe it (the summary) has delivered what it was intended to achieve,” the bank said. Lenders would still have to provide a quarterly general disclosure statement.

“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,” Deputy Governor Grant Spencer said.

The Reserve Bank is calling for submissions on its consultation document, and has two favoured positions, both of which reduce the number of quarterly documents banks are required to supply.

Banks expect it will take about three months to adapt to any of the changes indicated, the central bank said.

Discussion document here

Businesswire.co.nz

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