In response to TSB self-identifying issues concerning aspects of the computation and reporting of capital and liquidity ratios, the Reserve Bank of New Zealand (RBNZ) issued a notice under Section 95 of the Banking (Prudential Supervision) Act 1989 on 18 September 2026. The Notice requires TSB to provide the RBNZ with independent assurance regarding its compliance with the relevant prudential requirements relating to liquidity, capital adequacy and regulatory reporting.
TSB has appointed Deloitte to undertake this independent report with a focus on ongoing compliance post-merger. A draft report is due at the end of October, with a final report due to the RBNZ in November.
TSB’s current liquidity and funding positions are sound, and the bank remains well capitalised. The review provides an additional level of independent assurance as TSB prepares for the proposed merger with Heartland Bank.