Four New Zealand banks accredited under Basel II Accord

The Reserve Bank of New Zealand has accredited four New Zealand banks to adopt the internal models approach under the Basel II banking supervisory regime.

The banks who have been accredited to use the internal models for credit and operational risk from the first quarter of 2008, are:

• ANZ National Bank Limited;

• ASB Bank Limited; and

• Westpac New Zealand Limited.

In addition, Bank of New Zealand has been accredited to use internal models for operational risk from the first quarter of 2008. Bank of New Zealand is expected to apply for accreditation of its credit risk models during the year.

Reserve Bank Deputy Governor Grant Spencer said that "a key feature of the Basel II regime is that it increases the sensitivity of capital requirements to key bank risks, particularly credit risk".

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