Source: Reserve Bank of New Zealand
7 October 2025 – The Board of the RBNZ will form a new committee of the Board called the Financial Policy Committee (FPC). The FPC will be given authority to make key policy decisions relating to financial stability, including setting the prudential requirements for financial institutions regulated by the RBNZ, and making macro-prudential policy decisions such as Debt-to-Income and Loan-to-Value ratios for lending.
The FPC will consist of the RBNZ Board Chair, the Governor, three other RBNZ Board members, and up to two members who are not RBNZ Board members or employees of the RBNZ. The external members will be recognised experts in fields relevant to the FPC’s work.
The RBNZ Board Deputy Chair, Rodger Finlay, said: “The creation of the FPC will strengthen financial policy making at the RBNZ, with greater focus and expertise brought to bear to make sure that the New Zealand financial system remains strong and stable.”
“The decision to create the FPC followed engagement with the Treasury and Minister of Finance on ways to apply greater expertise and experience to financial policy decisions. A committee with formal policy decision-making authority from the RBNZ Board and credible external experts was seen to achieve this outcome.”
“Service on the FPC is a great opportunity to be at the heart of financial policy making. We look forward to receiving applications from experts who can give us independent perspectives and constructively challenge policy proposals,” Mr Finlay said.
The move to create the FPC is in line with recommendations from the Finance and Expenditure Committee’s recent Inquiry into Banking Competition to enhance the RBNZ’s financial policy making.
The RBNZ will soon put out a call for suitably qualified candidates to apply for the two available positions as external FPC members.
The FPC’s decisions will be subject to oversight by the full RBNZ Board and is planned to be operational from early 2026.
