The Reserve Bank of New Zealand (RBNZ) clearly does not trust APRA to do its job and protect the economy. Because the RBNZ has launched a proposal to raise tier 1 regulatory capital held by the banks to 16%:
Under the proposal, over five years or so, banks’ Tier 1 capital ratios would rise from the current industry average of around 12 percent of risk-weighted assets, to somewhere above 16 percent for banks deemed systemically important… The quality of bank capital (for financial stability purposes) would also improve…