Source: Reserve Bank of New Zealand
22 September 2022 – The Reserve Bank of New Zealand – Te Pūtea Matua has been evolving to meet the increased expectations placed on us as a modern central bank and prudential regulator, Deputy Governor Christian Hawkesby says in a speech published today.
“As an institution we are going through the most significant changes since the Reserve Bank of New Zealand reforms of the 1980s,” Mr Hawkesby says.
“Expectations on us have changed considerably in recent decades, which have led to changes to our legislation and mandate, including our new overarching purpose to ‘promote the prosperity and wellbeing of New Zealanders and contribute to a sustainable and productive economy’.”
We have been transforming our approach as a prudential regulator to match our role and responsibilities as a modern kaitiaki (guardian) of the financial system for Aotearoa, New Zealand, guided by three key documents: our Financial Policy Remit, Statement of Prudential Policy, and Relationship Charter, Mr Hawkesby says.
This transformation reflects that over time our role as prudential regulator has broadened beyond banks to include taking responsibility for non-bank deposit takers, financial market infrastructures, and insurance companies which serve important roles in New Zealanders’ lives and present different risks to the financial system. We have also been taking a more intensive approach to supervision and ensuring we have the appropriate tools to recover and resolve the institutions we regulate in the event of a crisis.
“A sound and well-functioning financial system is an invaluable public good which we all rely on to live our lives. At Te Pūtea Matua we have been taking a wider view of the financial system to recognise its interconnectedness with the rest of society,” Mr Hawkesby says.
Financial stability can be a powerful enabler of a virtuous circle of prosperity and wellbeing, which is why we are taking a long-term perspective on issues like climate change and recognising the strengths and benefits that incorporating a Te Ao Māori perspective provides.
“We are working collaboratively with other regulators, both in Aotearoa New Zealand and internationally and we are striving to build and maintain the best ‘regulator/regulated’ supervisory relationships possible with all our different regulated entities. We are doing this through the principle of ‘te whakatōpū’ – a combined effort to ensure an efficient system is upheld for the benefit of all,” Mr Hawkesby says.
More information
Our Transformation as a Prudential Regulator https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=bfbaf3481d&e=f3c68946f8
