The Reserve Bank has started a public consultation about what type of financial instruments should qualify as bank capital.
Capital regulations address not only the minimum amount of capital that banks must hold, but also the type of financial instruments that qualify as capital. The consultation that starts today is about the nature of financial instruments that are suitable, rather than the amount of capital.
Important considerations for regulations about bank capital include: the Reserve Bank’s regulatory approach; the resolution regime in the event of a bank facing difficulties; international standards issued by the Basel Committee on Banking Supervision; the Reserve Bank’s experience with the current capital regime; and the fact that dominant participants in the New Zealand banking market are subsidiaries of overseas banks. The consultation paper discusses these issues and outlines five options for reforming existing regulations.
The Bank’s proposed reforms to capital regulations aim to reduce the complexity of the regulatory regime; provide greater certainty about the quality of capital that banks hold; and reduce the scope for regulatory arbitrage.
The consultation closes at 5pm on Friday 8 September. More information:· Consultation paper: What should qualify as bank capital? Issues and Options· Review of the capital adequacy framework for registered banks
|A RBNZ article || July 14, 2017 |||
New regulations gazetted today will help revolutionise the way New Zealand’s commercial fisheries are managed and monitored, says Primary Industries Minister Nathan Guy.
The regulations require the use of geospatial position reporting (GPR), e-logbooks, and cameras across the commercial fishing industry and are being rolled out from 1 October this year.
“Digital monitoring is going to revolutionise the way we make fisheries management decisions, and help ensure that we are protecting the sustainability of New Zealand’s fisheries. It will give us arguably the most transparent and accountable commercial fishery anywhere in the world,” says Mr Guy.
“This new technology will provide more accurate and up-to-date information allowing us to make quicker and better-informed management decisions.”
Digital monitoring replaces the paper-based catch and effort reporting system for commercial fishing, which was too inefficient. Fishers will be required to provide more detailed information in their reporting and all data will be integrated by MPI so that what is reported can be compared to the GPR data and camera footage.
“The reality of the industry has too often meant that what happens at sea has been out of sight. We expect this new system will act as a significant deterrent to illegal activity, as the information it captures can and will be used by MPI for prosecutions when the rules are broken.”
The first two stages of digital monitoring – GPR and catch reporting via new e-logbooks – will be brought in from 1 October this year, with cameras phased in to each fishery from 1 October 2018.
Trawl vessels 28 metres and over will be using the GPR and e-logbooks from 1 October, representing over 70 percent of the commercial catch volume. All other operators will have a 6 month period to install the new systems.
“This is the biggest change to the commercial fishing industry since the introduction of the Quota Management System, and I have instructed MPI to support the industry to achieve full implementation and compliance over a six-month period.
“By 1 April 2018 all fishing permit holders will be required to be fully compliant with the GPR and e-logbook systems.”
Digital monitoring is part of the Future of our Fisheries programme, which is strengthening the fisheries management system and making it fit-for-the future. The programme also includes ongoing policy work to help ensure sustainable fisheries.
This year’s Budget included a boost of $30.5 million in funding over the next four years to support these improvements.
More information on this new system and the Future of our Fisheries programme is available at www.mpi.govt.nz/futureofourfisheries.
| A Beehive release || July 13, 2017 |||
Foiling Monos for Next America’s Cup?
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Southland company eyes export expansion
NZ welcomes visit from UK Foreign Secretary
NZ manufacturing activity slows in June as firms reduce hiring
George Bennett shines on steepest Tour de France test
Catherine Beard: Forget scaremongering, trade is important
Commercial fishers to phase in digital monitoring
HydroWorks Limited (“HydroWorks” or “Company”), a Christchurch based hydro engineering company, is pleased to announce that it has successfully commissioned five mini-hydro energy recovery systems (“Climate Defenders”) for the Melbourne Water Department (“Melbourne Water”).
The plants are located within Melbourne Water’s existing urban water supply network and have been designed to recover the excess energy present in the flowing water, convert it to electricity and export it into the Melbourne electricity network. The excess energy is a by-product of the height differences between Melbourne’s main water storage reservoirs and Melbourne’s inner suburb reservoirs and was “wasted” to the environment. HydroWorks plants trap and use that energy and give it back to the community. The Climate Defenders are located at Mt Waverley, Dandenong North, Wantirna, Boronia reservoirs and Cardinia Creek pumping station.
HydroWorks’ is committed to the principles of environmental sustainability and supports initiatives by clients to make use of energy sources that would otherwise be wasted. HydroWorks Climate Defenders are an exemplification of this commitment, harnessing energy for the community from within the community.
Climate Defenders are designed and assembled by HydroWorks using their own high-efficiency mini-hydro turbines (designed and manufactured in New Zealand) along with equipment from internationally-accredited suppliers. Each of the … Read More »
| A Bourse Communications release || July 13, 2017 |||
The Reserve Bank of New Zealand and the Ministry of Business, Innovation and Employment have started a public consultation on the implications for New Zealand of foreign margin requirements for over-the-counter derivatives. New Zealand has no margin requirements in over-the-counter derivatives, but several banks registered to operate in New Zealand will likely have to comply with margin rules being implemented in foreign jurisdictions. Margins is collateral exchanged by derivative market participants in order to protect against the risk posed by credit exposures and to reduce the risks of financial market contagion if a derivative contract counter-party defaults. Some features in New Zealand laws that cover statutory management and creditor priorities could impede the prompt and free availability of margin provided by New Zealand banks, potentially impairing banks’ access to derivative products and markets they use for funding and hedging. Addressing the issue can help to protect and promote the soundness, efficiency and global integration of New Zealand’s financial sector. The consultation identifies specific impediments in New Zealand insolvency laws and proposes a number of targeted legislative amendments to address them. The consultation seeks stakeholder’s views on the scope of the issues identified, and the adequacy and effect of the amendments proposed. The consultation closes on Thursday 24th August. Consultation paper: NZ Response to Foreign Margin Requirements for OTC Derivatives
| A RBNZ release || July 13, 2017 |||
Science and Innovation Minister Paul Goldsmith today announced a new Regional Research Institute based in Greymouth that will use innovative research and manufacturing techniques to unlock the potential of New Zealand’s minerals resources.
The New Zealand Institute for Minerals to Materials Research led by industry organisation Minerals West Coast Trust, is the third successful proposal under the Government’s initiative to establish new Regional Research Institutes.
“Mining is and will continue to be an important part of the West Coast’s economy, its history, and its DNA,” Mr Goldsmith says.
“The new institute’s strategic vision is to reposition this traditional sector using innovation to convert minerals into higher-value products which will begin a new chapter in the history of the West Coast.”
The Government will provide funding of $11 million over four years for the new institute. With additional funding from industry, it will operate as a private, independently governed organisation.
The institute will explore three research areas initially, including purifying rare earth elements for use in magnets and lasers, extracting tungsten from gold mining waste and developing a carbon foam pilot plant.
“This research has the potential for significant commercial outcomes and economic benefits for the West Coast region including jobs, new infrastructure and export revenue,” Mr Goldsmith says.
“The institute will bring together players from the minerals and materials sectors, an economic development agency, Ngāi Tahu, and research organisations. All of which demonstrates a strong, cohesive collaboration with significant support from the wider community and iwi.
“I look forward to seeing the institute get started and what innovations it can produce for the benefit of the Coast,” Mr Goldsmith says.
The announcement of the new institute through the Regional Research Institute initiative comes as the West Coast launches its Tai Poutini West Coast Economic Development Action Plan. The West Coast was included in the Government’s Regional Growth Programme in November 2015. The programme aims to increase jobs, income and investment in regional New Zealand. More information can be found on the MBIE website, HERE.
| A Beehive release || July 13, 2017 |||
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242