The Reserve Bank is requesting two reports from ANZ New Zealand to provide assurance it is operating in a prudent manner.
Section 95 of the Reserve Bank of New Zealand Act 1989 gives the Reserve Bank the power to require a bank to provide a report by a Reserve Bank-approved, independent person. These reviews can investigate such issues as risk management, corporate or financial matters, and operational systems.
The first report will cover ANZ New Zealand’s compliance with the Reserve Bank’s current and historic capital adequacy requirements.
The second report will assess the effectiveness of ANZ New Zealand’s Director’s Attestation and Assurance framework, focussing on internal governance, risk management and internal controls.
Reserve Bank Governor Adrian Orr said ANZ remains sound and well capitalised.
“We continue to engage constructively with ANZ New Zealand’s board, and they remain focussed on these important issues. These formal reviews will allow us to work with the bank to ensure the public, and we as regulator, can have continued confidence in the bank and that it is operating in a prudent manner.”
“Section 95 reports are part of our supervisory toolkit and provide independent assurance and insight about banks’ systems and practices. We have used them effectively in the past, and we will continue to do so.”