##fc regulation, particularly around capital adequacy, has produced a layering of requirements on top of the basel ii reforms that were finalised in 2008. a fresh look at the body of regulation in each key area should offer scope for simplifying the framework, including the removal of redundant regulations. third, we need to step back and look at the consistency and coherence of the whole regulatory regime. for example, do the changes to capital and liquidity requirements have implications for the prudential policies in other areas such as disclosure or governance? is our alignment with international standards appropriate? do we have a consistent approach between banks and non - banks? improving the efficiency, clarity and consistency of prudential standards in reviewing the specific prudential requirements applying to banks and nbdts, our objective is to improve the efficiency, clarity and consistency of these requirements. efficiently designed regulatory requirements should achieve their objectives while minimising compliance costs as far as possible. some of the questions we will be asking about the efficiency of existing requirements include : • are all of the prudential requirements necessary to maintain a sound and efficient financial system? • do the requirements serve their original purpose? should they be cut back, removed, or replaced? • does alignment with international standards or the requirements of other jurisdictions help to improve efficiency by avoiding the need for banks with foreign parents to comply with multiple sets of rules? we also want to make sure that the prudential requirements applying to banks and nbdts are as clearly presented as possible. in particular, the banking supervision handbook has evolved organically over time and this has inevitably resulted in some aspects of the handbook not being presented as logically and coherently as we would like. the scope of the review included in the scope of the review will be the regulatory documents, regulations and legislative provisions containing the prudential requirements for banks and nbdts. for banks, this means all of the standard conditions of registration, guidance and orders in council that make up the banking supervision handbook, and that contain requirements relating to everything from capital to obr pre - positioning. bis central bankers ’ speeches for nbdts, it means the regulations and legislative provisions that establish their specific prudential requirements. the project will not be looking at changes to the reserve bank act itself, or the recently enacted non - bank deposit takers act 2013 5. as such, it will not be looking at the supervisory approach adopted in the two sectors

tool to lvrs that will enable us to more efficiently target financial stability risks. we've continued the mahi around implementing the new deposit takers act, which will transform our approach to the regulation of banks and other deposit takers, while helping to ensure the safety and soundness of deposit takers. the act introduces a new depositor compensation scheme ( dcs ) so depositors can have confidence that their deposits, in the event of a deposit taker failure, are eligible for compensation up to $ 100, 000 per depositor, per institution. a substantial work programme is underway to implement the new prudential framework for deposit takers. parts of the current banking ( prudential supervision ) act 1989 relating to the regulation and supervision of registered banks and the non - bank deposit takers act 2013 will remain in force until the remaining parts of the dta have been fully implemented. we've also continued our collaboration and engagement with industry around improving mori access to capital. we are working collaboratively with retail banks to help them understand the flexibility of the regulator regime, and it's been heartening to see some banks delivering innovative ways to support mori to build homes on their whenua / land. we look forward to our continued engagement with finance and expenditure committee and we welcome your questions. 2 / 2 bis - central bankers'speeches