"As the Government response notes, some of the FEC recommendations are directed to areas where The Reserve Bank of New Zealand - Te Pūtea Matua is the decision maker," said Angus McGregor, Acting Assistant Governor of Financial Stability.
"We see a stable, competitive and efficient banking system as a vital part of a healthy economy and we are pleased that we have already made progress on many of the FEC's recommendations."
Key parts of the RBNZ's ongoing work programme highlighted in the Government's response include the in-progress review of capital settings; consultation on the use of the term 'bank'; and leading the development of a payments modernisation strategy as a part of our Future of Money and Payments work.
Recently completed work includes establishing a Financial Policy Committee to make key financial stability decisions; reducing the minimum capital requirement for deposit takers from the current $30m to $5m when the Deposit Takers Act comes into force; expanding access to our settlement systems; and published guidelines for managing climate related risks.
"We have noted the request from FEC for regular progress updates and look forward to contributing to that process. We are also looking forward to working with our fellow regulators and Treasury to continue to promote a financial system that supports a productive economy and the wellbeing of all New Zealanders," said Mr McGregor.
More information
- 2025 review of key capital settings, including risk weights: 2025 Review of key capital settings
- Consultation on use of the word "bank": RBNZ opens consultation on use of the term 'bank'
- Reserve Bank establishes new Financial Policy Committee: Reserve Bank establishes new Financial Policy Committee
- Opening access to ESAS: RBNZ opens final phase of Exchange Settlement Account System applications
- Minimum level of capital under the Deposit Takers Act: Deposit Takers Core Standards - Summary of Submissions and Policy Decisions for the Capital Standard (PDF, 745KB)
- Guidance on managing climate-related risks: Guidance - Managing climate-related risks (PDF, 819KB)
- Payments modernisation: RBNZ letter to Payments NZ on payments modernisation (PDF, 158KB)
