This consultation document is seeking views on the role the Reserve Bank should have in safeguarding New Zealand’s financial system, and how the Reserve Bank should be governed. You are invited to provide your views on these important issues. Submissions on the consultation document and the questions it asks are welcome by 25 January 2019.
Last year the Government announced that it would undertake a review of the Reserve Bank of New Zealand Act 1989 (the ‘Review’), with the aim of modernising the Reserve Bank’s monetary and financial policy frameworks and its governance and accountability arrangements.
The Review is one of the Government’s initiatives to “grow and share New Zealand’s prosperity more fairly”. It supports the development of a productive, sustainable, and inclusive economy.
Phase 1 of the Review (which is largely complete) focused on improving the Reserve Bank’s monetary policy framework, and led to Cabinet announcing agreed policy changes in March 2018.
Phase 2 (the subject of this consultation document) focuses on the Reserve Bank’s financial policy framework. This framework underpins the Reserve Bank’s role in prudential regulation and supervision, which aims to ensure that financial institutions adequately manage their own financial risks and the risks they collectively pose to the financial system. Phase 2 also considers other matters, such as how the Reserve Bank is governed.