WELLINGTON, Sept. 23 (Xinhua) -- New Zealand's Reserve Bank will be reporting material breaches from banks on its website from next year in an effort to improve transparency and market discipline.
The Reserve Bank on Monday published a summary of submissions and final policy decisions on the reporting and publication of breaches by banks.
The decision follows a public consultation on the matter late last year, and ongoing discussion with stakeholders on a new framework for the reporting of banks' breaches.
The new policy will require a bank to report promptly to the Reserve Bank when there is a breach or possible breach of a requirement in a material manner, and report all minor breaches every six months. Only actual material breaches will then be published on the Reserve Bank's website, according to a release of the Reserve Bank.
"The policy aims to enhance market discipline by ensuring prompt breach reporting and publication, and by making it easier to find and compare information about banks' compliance history," Geoff Bascand, deputy governor and general manager Financial Stability, said in a statement.
"It also encourages bank directors to focus on materially significant issues and the management of key risks rather than concern themselves with relatively minor issues," Bascand said, adding the measure will take effect from Jan. 1, 2020.
