The Reserve Bank is proposing a new policy for locally incorporated registered banks that are considering making significant acquisitions, investments or business mergers.A consultation paper published today proposes that banks should be required to obtai
The Reserve Bank is proposing a new policy for locally incorporated registered banks that are considering making significant acquisitions, investments or business mergers.
A consultation paper published today proposes that banks should be required to obtain a notice of non-objection from the Reserve Bank before undertaking such transactions.
Deputy Governor Grant Spencer said the proposed policy was intended to enable the Reserve Bank to assess any risks to the wider financial system arising from a significant acquisition before that acquisition took place.
Responses to the consultation paper should be submitted to the Reserve Bank by the end of January.
