Reserve Bank eases capital requirements to boost competition

Wednesday 17 December 2025 · 3 outlets · 3 reports · updated Wed 17 Dec 2025, 2:48pm

In this story Reserve Bank of New Zealand

The Reserve Bank is reducing the minimum capital owners must invest in their banks. Finance Minister Nicola Willis says these changes should help smaller banks compete more effectively against the big four. The move is expected to lower bank funding costs by approximately $5 billion and reduce interest rates for customers.

How they headlined it

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1. StuffWed 17 Dec 2025, 9:55am

   Small banks expected to be able to compete better against big four banks under Reserve Bank rule changes, Willis says (opens in new tab)

2. NZ HeraldWed 17 Dec 2025, 10:52am

   Reserve Bank makes it cheaper for banks to meet controversial capital rules - savings expected to be passed onto customers (opens in new tab)

3. RNZWed 17 Dec 2025, 2:48pm

   Reserve Bank eases capital requirements on banks (opens in new tab)