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Capital & Liquidity

Domain ID D01
Owner Chief Risk Officer / Chief Financial Officer
Jurisdiction NZ + AU
Applicability Platform — SD06 delivers LCR/NSFR (MOD-032), RWA/capital ratios (MOD-033), stress testing (MOD-034), IRRBB model (MOD-035), and prudential return builder (MOD-036) for both Track 1 and Track 2 tenants.

Management of regulatory capital adequacy, liquidity buffers, and funding stability across NZ and AU operations.

Minimum capital requirements

NZ (RBNZ): CET1 ≥4.5% + Tier 1 ≥6.0% + Total Capital ≥8.0% + PCB (Prudential Capital Buffer) ≥3.5%. Effective minimum: 8% CET1 for most banks. Target operating range: ≥11%.

AU (APRA): CET1 ≥4.5% + Capital Conservation Buffer ≥2.5% = 7.0% effective minimum. Target operating range: ≥11%.

Liquidity requirements

LCR ≥ 100% (ratio of high-quality liquid assets to net cash outflows over 30 days). NSFR ≥ 100% (stable funding vs required stable funding). Both calculated daily from live ledger data via Snowflake (MOD-032).

Policies

Code Policy name Status
CAP-001 Capital Adequacy Policy Draft
CAP-002 Liquidity Risk Management Policy Draft
CAP-003 Capital Planning & Stress Testing Policy Draft
CAP-004 Interest Rate Risk in the Banking Book (IRRBB) Policy Draft
CAP-005 Internal Capital Adequacy Assessment Process (ICAAP) Policy Draft
CAP-006 Capital Disclosure & Reporting Policy Draft

Systems satisfying this domain

  • MOD-032: LCR/NSFR calculator (SD06) — CALC
  • MOD-033: RWA & capital ratio engine (SD06) — CALC
  • MOD-034: Stress testing scenario engine (SD06) — CALC
  • MOD-035: IRRBB/EVE/NII model (SD06) — CALC

Policies in this domain

Code Title Status Owner
CLQ-001 Capital Adequacy Policy Draft Chief Financial Officer
CLQ-002 Liquidity Risk Management Policy Draft Chief Financial Officer
CLQ-003 Capital Planning & Stress Testing Policy Draft Chief Risk Officer
CLQ-004 Interest Rate Risk in the Banking Book (IRRBB) Policy Draft Chief Financial Officer
CLQ-005 Internal Capital Adequacy Assessment Process (ICAAP) Policy Draft Chief Risk Officer
CLQ-006 Capital Disclosure & Reporting Policy Draft Chief Financial Officer

Compiled 2026-05-22 from source/entities/risk-domains/D01.yaml