At a speech delivered in Auckland this morning to the Financial Services Institute of Australasia (FINSIA), Reserve Bank Governor Adrian Orr outlined the bank’s vision to be ‘a great team and the best central bank’. He also encouraged others to get involved in shaping this future.
“This is the appropriate time to outline the future of the Reserve Bank, and how the legislative changes under consideration will promote the prosperity and wellbeing of New Zealanders, and contribute to a sustainable and productive economy”.
Reflecting on the Government’s recent announcements about the review of the Reserve Bank Act, Mr Orr said, “I’m privileged to be the Governor and during my tenure the Bank has actively embraced change. We will continue to evolve so as to remain effective and ensure we are future-fit.”
The Government recently decided that the Reserve Bank’s new mandate will ensure the Board has more formalised duties, owning both the strategy and risk appetite of the Reserve Bank.
Mr Orr said, “I welcome these developments. They will support our purpose and team, and best ensure the transparency, accountability, and diversity of thought that is needed to form our decisions. Stakeholders can expect the Bank to be clear about what the organisation is designed to achieve and how it is performing across all of our functions.”
Mr Orr went further to say, “The Reserve Bank – Te Pūtea Matua – has a significant guardianship role in our financial system and economy. To succeed, we need to be effective, well understood, and a source of pride and confidence in our community.
Our evolution includes more skilled people on the ground, using world-class analytical frameworks, taking an appropriate long-term view in our supervision activities, and being willing to act. Banks and insurers have experienced some of this change already.
The broader community will expect us to engage with them more. Our goal is to be astute to economic and financial developments that will impact us all – ranging, for example, from the future form of payments, the shape of our financial institutions, and financial inclusion, through to the impact of climate change on financial stability.”
The review of the Reserve Bank Act consultation is open until 16 August 2019. It asks questions about the tools and powers the Reserve Bank should have to do its job well.