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NZ Group 2

Tier ID NZ-G2
Jurisdiction NZ
Status Current
Asset threshold NZD 2 billion – NZD 100 billion
Capital methodology Standardised
Liquidity framework LCR-NSFR-MFCR
OBR applicable Yes
Disclosure tier Full
D-SIB eligible No

Notes

Mid-tier NZ deposit takers — Kiwibank, TSB Bank, Heartland Bank, Co-operative Bank, SBS Bank, and any finance company growing past NZD 2 billion. Standardised capital approach only (no IRB). PCB is 3.5% minimum (no D-SIB surcharge). OBR pre-positioning required where RBNZ includes OBR in the entity's resolution plan — entity-specific flag, not automatic from group membership. LVR/DTI measurement uses a 6-month rolling period vs 3-month for Group 1.

Profile

Group 2 contains mid-tier NZ-incorporated deposit takers with total assets between NZD 2 billion and NZD 100 billion. Current members include Kiwibank (~NZD 28bn), TSB Bank (~NZD 9bn), Heartland Bank (~NZD 8bn), SBS Bank (~NZD 5bn), and the Co-operative Bank (~NZD 4bn). Finance companies that grow above the NZD 2 billion threshold graduate from Group 3 into Group 2.

Capital

Standardised approach only — no IRB accreditation available at Group 2. Minimum capital ratios: CET1 4.5%, Tier 1 7.0%, Total Capital 9.0%. Prudential Capital Buffer (PCB) is 3.5% minimum (versus 5.5% for Group 1 D-SIBs). No LAC requirement. AT1 capital has been removed from the NZ framework; all Tier 1 must be CET1.

Liquidity

Same framework as Group 1: LCR (≥ 100%), NSFR (≥ 100%), and MFCR (≥ 75%). LVR/DTI lending standard applies, but with a 6-month rolling measurement period (versus 3-month for Group 1).

Resolution and OBR

OBR pre-positioning applies where RBNZ includes OBR in the specific entity's resolution plan. This is entity-specific and is not automatically triggered by Group 2 membership. The obr_applicable flag on a client instance record must be set based on the entity's confirmed resolution plan.

Disclosure

Full quarterly prudential disclosure statements plus annual statements, same as Group 1. Full BCBS Pillar 3 remuneration disclosure.

Platform relevance

Group 2 is the most likely configuration for a digital challenger bank or a growing community institution deploying this platform. The capital module (MOD-033) uses standardised RWA. The liquidity module (MOD-032) computes full LCR, NSFR, and MFCR. OBR module (MOD-143) is available but activation depends on the entity-level resolution plan flag.

Applicable non-core standards

  • Governance
  • Risk Management
  • IRRBB
  • Operational Resilience
  • OBR Pre-positioning
  • Outsourcing
  • Cyber Resilience
  • Lending (LVR/DTI)

Tier-specific regulations

Regulations that apply exclusively or in a materially different way to this tier:

Reg ID Title Status
nz-dta-lending DTA Lending Standard Draft
nz-dta-obr DTA OBR Standard Draft
nz-dta-outsourcing DTA Outsourcing Standard Draft

Tier-specific policies

Policies that apply exclusively to this tier (not all tiers in the jurisdiction):

Code Title Status
CLQ-004 Interest Rate Risk in the Banking Book (IRRBB) Policy Draft
CLQ-007 Climate Risk Management Policy Draft
REP-012 TCFD Climate Disclosure Policy Draft

Tier-specific modules

Modules deployed exclusively for this tier:

Module Title Status
MOD-032 LCR / NSFR calculator Deployed
MOD-143 Open Bank Resolution pre-positioning Deployed

Compiled 2026-05-22 from source/entities/entity-tiers/NZ-G2.yaml