Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
FE 23: Banking group’s funding debt
or “How to calculate a banking group's debt used for funding”
You could also call this:

“Rules for making and changing banking regulations in New Zealand”

This section talks about rules for banking in New Zealand. The Governor-General can make changes to these rules by issuing an Order in Council.

The Governor-General can decide what types of financial instruments are included or not included when calculating a bank’s equity value. They can also set, change, or remove limits on how much of these instruments a person or group can hold.

The Governor-General can also change the definition of certain terms used in the banking rules, like ‘threshold’ and ‘interest rate of return’.

These changes can start from 1 July 2005 or later. They can apply to financial periods that begin on or after that date.

When the Governor-General makes these changes, they become law even if they haven’t been published yet. However, they still need to be published according to the rules set out in the Legislation Act 2019.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: FE 25: New Zealand group for excess debt entity that is a company or non-resident owning body

or “How to determine the New Zealand group for companies or non-resident bodies with excessive debt”
Next

Part F Recharacterisation of certain transactions
Interest apportionment on thin capitalisation: New Zealand banking group

FE 24Regulations

  1. This section applies for the purposes of sections FE 21 and FE 22.

  2. The Governor-General may, from time to time, by Order in Council—

  3. specify a type of instrument that is included in equity value under section FE 21(3):
    1. specify a type of instrument that is not included in equity value under section FE 21(3):
      1. set, replace, or repeal a figure for a threshold amount for a value of an instrument, or aggregate value of a type of instrument, held by a person or group of persons for the purposes of a specification under paragraph (a) or (b):
        1. amend or delete a specification under paragraphs (a) to (c):
          1. set, replace, or repeal a figure for the threshold amount for the purposes of the definition of threshold in section FE 22(3)(b)(i):
            1. set, replace, or repeal a figure for the definition of interest rate of return in section FE 22(3)(d)(i).

              1. An Order in Council under subsection (2) may—

              2. come into effect on or after 1 July 2005:
                1. apply for measurement periods and quarters that—
                  1. are in the 2005–06 income year or a later income year; and
                    1. commence on or after 1 July 2005.

                    2. An Order in Council under subsection (2)—

                    3. is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements); and
                      1. commences in accordance with subsection (3), even if it is not yet published.

                        Compare
                        Notes
                        • Section FE 24(4) heading: inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                        • Section FE 24(4): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).