Reassurance that banking won't be much riskier even if capital rules are changed

The Reserve Bank's put out two proposals to loosen capital requirements after the government called for it.

One of them is reducing minimum capital requirement for deposit takers from 30-million dollars to five-million dollars.

Founder of Kiwisaver provider Simplicity, Sam Stubbs, says there are other rules so it won't make it much more hazardous.

He says the Reserve Bank will still keep a close eye on any group calling themselves a bank.