Dec 17 (Reuters) - National Australia Bank Ltd NAB.AX :
* RESPONDS TO RBNZ PAPER ON CAPITAL FRAMEWORK
* NAB - BASED ON PROPOSALS SET OUT BY RBNZ, RECOMMENDATIONS WOULD IMPLY A POTENTIAL TIER 1 CAPITAL INCREASE OF NZ$4-5BN FOR BNZ
* REFERS TO UNIT BANK OF NEW ZEALAND AS "BNZ"