Introduction to Open Bank Resolution - Deposits

This module is used in the execution of the Open Bank Resolution which is initiated in the event of default in a bank and as per the guidelines of the Reserve Bank of New Zealand. Part or entire funds in liability products (currently Deposits) are frozen for an indefinite period and released partially over a period of time as the financials of the bank improves.

Click here to understand the terms and abbreviations used in this module.

Term Deposits

The Open Bank Resolution (OBR) is a stage when a statutory manager nominated by a regulator takes control of the bank in case of bank failure. OBR involves a process where the current deposit balances are split into two types of funds, that is available funds and frozen funds.

The customer can access the available funds but the customer cannot access the frozen funds temporarily. The frozen funds are released in parts until the time the bank revives from the failure.

This functionality allows the statutory manager to split the current balances in deposits into available funds and frozen funds.

The NZOBRS.FUNDS,NZ.FREEZE.INPUT I DEPOSITS version is introduced to freeze a defined percentage of funds and setup frozen funds within a deposit arrangement which will be later returned to available funds. This unfreezing operation will go on until the release percentage touches 100% for all the deposit products.