The Reserve Bank of New Zealand is putting all its efforts to regulate the non-bank deposit takers (NBDTs) out for a discussion. The government of the country started its efforts in the year 2007 to regulate the NBDTs as a number of finance companies collapsed at that period of time. This regime is planned to be implemented in two phases and the first phase includes the credit rating and prudential requirements and beefed up the power of the central bank of the country.

While the second phase includes licensing, fit and proper requirements for the senior officers and directors, and distress and failure of management powers for the central bank RBNZ. The RBNZ has said all the majors are needed to be consulted to strengthen the power of the bank.

The regulatory regime has been introduced to overcome the gaps in the existing regulation of NBDTs which includes the absence of minimum entry requirements and the inconsistency in the governance and prudential requirements across the sector.

In near future the licensed NBNTs will be required to meet the minimum prudential requirements.