Prudential Requirements – Why the banks need it and why there’s a demand
Tyler Wren - Career Experts
Specialist recruitment within: Accounting / Legal / Insurance / Financial Services / Risk & Compliance
As specialist recruiters in the risk and compliance space, we are seeing more and more prudential roles appear within the banks due to renewed demand for skills in this area. There is a separate prudential regulator and conduct regulator when it comes to banking regulation in New Zealand. The RBNZ is the primary regulator of banking in NZ and acts as the prudential regulator.
As stated by the RBNZ, “the key objective of prudential requirements is to ensure the financial system is maintained and efficient without hurting the system which would significantly damage the bank”. In recent times, there have been significant changes to banking prudential rules which have resulted in an increased demand for skilled individuals with prudential experience. As of 1st October 2021, the policy framework and the rules that apply to NZ registered banks were put into force. (RBNZ, 2021 https://www.rbnz.govt.nz/regulation-and-supervision/banks/prudential-requirements )
Another change happening around prudential rules is the increased minimum capital which will come into play with the transition period starting in July 2022. As of now, banks are required to have capital of at least 8% of their risk-weighted asset equivalents, however, in year three of the transition period, this will increase to 9%.
What we are seeing from a required skill set in these roles is the ability to support and provide advice on numerous aspects of licensing and prudential compliance.
You will also work with the wider compliance teams on the implementation of bank-wide policies and regulatory obligations, along with playing an important part in ensuring the bank complies with legislation and regulations. If you are an individual with prudential expertise and you are interested in having a chat about a role that we are currently working on please reach out.
For a confidential discussion around the opportunities in this space, you can contact Sarah Kennerley on 09 869 7180 or send across your cv to [email protected]