Dec 17 (Reuters) - National Australia Bank Ltd NAB.AX on Monday flagged a potential Tier 1 capital increase of about NZ$4 billion to NZ$5 billion ($2.7 billion to $3.4 billion) for subsidiary Bank of New Zealand BNZL.UL , after New Zealand's central bank proposed to almost double capital requirements for banks.
The Reserve Bank of New Zealand (RBNZ) said on Friday it was considering almost doubling the required capital banks would need to hold to bolster the financial system's capacity to handle any shocks. ($1 = 1.4721 New Zealand dollars)
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ NZ central bank proposes almost doubling bank capital requirements, kiwi dlr falls