The Reserve Bank of New Zealand has proposed that foreign-owned banks with a small systemic presence in New Zealand be able to simultaneously operate a New Zealand branch and a subsidiary in a structure it would call "dual registration."The central bank, which is also New Zealand's banking regulator, said a number of foreign banks with smaller operations in New Zealand had sought permission to operate branches alongside their existing subsidiaries."These banks have suggested that a standalone subsidiary structure prevents them from growing their local lending activities as planned, due to high operating costs arising from local capital and other regulatory requirements," the RBNZ said in a discussion paper."Permitting banks to operate branches alongside their existing subsidiaries could potentially open up more diversified funding channels in New Zealand and encourage greater competition for the incumbent banks," it said.The RBNZ said the dual registration status would be available to those foreign-owned banks with local liabilities of less than NZ$15 billion within the next five years, and where the bank's home jurisdiction did not give retail deposit takers a preferential claim in any winding up of the bank.Consultation on the proposal is open until August 24 and the Reserve Bank said it would issue a summary of submissions and a final decision after that.