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Deposit Takers Act 2023

Regulation of deposit takers - Credit rating

65: Licensed deposit taker must notify Bank of credit watch warning

You could also call this:

"Licensed deposit takers must tell the Bank within 20 working days if they get a credit watch warning about their credit rating."

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, you must tell the Bank if you get a credit watch warning about your credit rating. You have 20 working days to do this after you get the notice. You must give the Bank a certificate from the approved rating agency that says when the warning was given and why.

The certificate is important because it explains what the credit watch warning means. A credit watch warning is when an approved rating agency is thinking about lowering your credit rating. They use special words or symbols to show this.

If you do not tell the Bank about the credit watch warning, you can get in trouble. You might have to pay a fine of up to $10,000 or even up to $25,000 if you go to court.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS495633.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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64: Licensed deposit taker must notify Bank of change in rating, or

"Tell the Bank if your credit rating changes"

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"Banks and lenders must show their credit rating on their website so you can see how safe they are."

Part 3Regulation of deposit takers
Credit rating

65Licensed deposit taker must notify Bank of credit watch warning

  1. A licensed deposit taker must, within 20 working days after receiving notice that a credit watch warning has been given in respect of the deposit taker’s credit rating, deliver to the Bank a certificate by the approved rating agency of the credit watch warning.

  2. The certificate must state the date on which it was given and the reasons for it.

  3. In this section, credit watch warning means any word, expression, or symbol used by an approved rating agency to indicate that the agency has a deposit taker under consideration with a view to a possible downgrading in a credit rating given to the deposit taker by the agency.

  4. A licensed deposit taker that contravenes subsection (1) commits an infringement offence and is liable to—

  5. an infringement fee of $10,000; or
    1. a fine imposed by a court not exceeding $25,000.