UNCLASSIFIED
28 January 2026
ref: OIA2526_129
Sam Brown
By email: Sam Brown
[FYI request #33465 email]
Tēnā koe Sam
Information about Banking Practices
Thank you for your 8 January 2026 request under the Of icial Information Act 1982 (OIA), for
information. We wil answer each of your questions in turn:
1. Any analysis, research, or supervisory observations regarding bank lending
practices for specialised infrastructure assets in rural or regional contexts,
particularly where:
- Assets have specialised use cases with limited secondary markets (e.g.,
telecommunications towers, network equipment, industry-specific infrastructure)
- Borrowers lack residential property security but operate viable businesses with
stable cash flows
- Asset il iquidity rather than business credit risk appears to constrain lending
decisions.
Response:
This part of your request is refused under section 18(d) of the OIA, as:
• The information is already publicly available (see pages 15 and 20 of the
decision document:
2025 Review of key capital settings decision
document)
• Any further background information will soon be publicly available as part
of the proactive release of capital review documents, scheduled for
February 2026.
2. Any assessment of whether regulatory capital requirements, risk weighting
frameworks, or lending standards create systematic barriers to financing certain
infrastructure types, even where underlying business fundamentals are sound.
Response:
Regarding regulatory capital settings and risk weight frameworks, please see
our response to Question 1. RBNZ have not conducted any assessment as
to whether the underlying business fundamentals for a transaction would be
sound given that we do not undertake credit reviews.
3. Any observations from bank supervision activities regarding whether commercial
banks adequately serve infrastructure financing needs in rural areas, or whether
gaps exist that constrain economic development or essential service provision.
Ref #22696461 v1.1
UNCLASSIFIED
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Response:
RBNZ does not have any prudential requirements which look to determine
the products and segments that commercial banks must allocate capital and
funding. These are commercial decisions for each organisation to make.
4. Any advice provided to government regarding:
- Credit market gaps or failures in rural or infrastructure financing
- Whether Crown development finance, guarantees, or alternative mechanisms
could address market failures without displacing viable commercial lending
- International approaches to rural infrastructure financing where commercial
credit markets are insufficient.
Response:
RBNZ does not any information that directly addresses this. However, we do
have some information that might be relevant in a broader sense:
FEC submission on competition in rural and business banking
https://www.rbnz.govt.nz/-
/media/project/sites/rbnz/files/publications/information-releases/2024/fe…
Bulletin on risk weights
https://www.rbnz.govt.nz/hub/publications/bulletin/2024/how-risk-weights-
affect-bank-lending
2023 FSR special topic on agriculture
https://www.rbnz.govt.nz/-
/media/project/sites/rbnz/files/publications/financial-stability-reports/…
This response may be published on the RBNZ website during our regular publication cycle.
Typically, information is released monthly, or as otherwise determined. If we publish this response,
your name and contact details will be removed before publication.
We encourage you to raise any concerns you have about this response with the RBNZ directly.
Alternatively, you have the right to seek an investigation and review of this response from the
Of ice of the Ombudsman. Information about how to make a complaint is publicly available, at
www.ombudsman.parliament.nz or freephone 0800 802 602.
Nāku noa, nā
[first name, last name]
[title, business unit]
2
UNCLASSIFIED
3
3
UNCLASSIFIED
Document Outline
