The Reserve Bank of New Zealand, Te Pūtea Matua, is evolving so it is well positioned to respond to new challenges, risks, and opportunities, Governor Adrian Orr said in a speech today.
Speaking at Canterbury Employers’ Chamber of Commerce in Christchurch, Mr Orr shared his reflections since re-joining the Reserve Bank two years ago. The new challenges facing the Bank include record low international interest rates, a wider regulatory remit for the Bank, new legislative requirements on purpose and governance, changing societal expectations of business conduct and culture, emerging technologies, and climate change.
Mr Orr also explained the work that is underway to ensure the Bank continues to best promote the prosperity and wellbeing of all New Zealanders.
“It is important for our legitimacy that a broad cross-section of New Zealanders – rather than a few technical experts or regulated institutions – are interested in and understand our activities. Where we fit, what we do, and what we don’t do. We are working for all current and future New Zealanders.”
Mr Orr said the Bank’s legislation and core functions and capability were established more than 30 years ago, and are being seriously stretched. Good progress had been made to modernise the legislation, and update the Bank’s governance and accountability settings.
“As kaitiaki (guardians) of Te Pūtea Matua, we have a unique opportunity to inform the design and deliver the current and future legislative changes. We are working closely with our New Zealand Treasury colleagues on this important challenge. At the same time, we have also embarked on getting the Bank into shape to manage this transformation. We are focused on investing in the capability and capacity of our team and systems, so as to be a high performing ‘Great Team’,” Mr Orr said.
“I am confident the work the Bank has embarked on is necessary, timely, appropriately ambitious, and challenging. We have a strong belief in the long-term benefit of our work for all New Zealanders, and given the tools and resources necessary to do the job, I am also confident we will succeed.”