The Coalition Government's work to ensure New Zealand's financial system is well regulated within a modern framework progressed today, Finance Minister Grant Robertson says.
"The Reserve Bank Act has been in place for nearly 30 years. Over that time, the scope, focus and intensity of regulation and supervision has evolved. Alongside this, changes to the Reserve Bank's statutory framework have occurred through a series of separate, targeted amendments rather than through a comprehensive work programme," Grant Robertson said.
"Now is the right time to do that work to ensure we have a fit for purpose financial stability and regulatory framework for the coming decades.
"Phase 2 of the Review of the Reserve Bank Act opened today. This work will ensure the Act aligns with what the Government considers will provide a strong, flexible and enduring regulatory framework that enjoys broad public and industry support," Grant Robertson said.
The work is being led by a joint Treasury-Reserve Bank team. The Government is being advised by an independent expert panel. More details are available on the Treasury's website here. The scope and terms of reference for Phase 2 can be found here.
The Phase 2 work is separate from the FMA-Reserve Bank review of the conduct and culture of New Zealand financial services entities, which is due to be released next week.
The legislation implementing Phase 1 of the Review – improving New Zealand's monetary policy framework – is currently progressing through Parliament.
