The Reserve Bank of New Zealand (RBNZ) is considering the possibility of dropping contingent debt instruments from its capital regime, citing concerns over recent European experience.
In a document published today (July 14), the central bank says it has concerns over the complexity and side-effects of the instruments, which are sold as debt but contain “triggers” that cause them to convert to equity when a bank gets into trouble.
The RBNZ says it sees “little regulatory value” in “going concer
- A route to economic growth – The Belt and Road Initiative 2018 survey
- Dudley backs floor-based system for setting monetary policy
- Asian Infrastructure Investment Bank – Raising expectations
- CFTC’s fintech catch-up effort includes ‘global sandbox’ push
- Quarles: yield curve flattening not “likely” a signal of recession