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Phase 2 - Reviewing the Reserve Bank of New Zealand (RBNZ) Act

Terms of Reference announced on 7 June 2018

On 7 June 2018, the Minister of Finance Grant Robertson announced phase 2 of the Government’s review of the Reserve Bank Act and released a Terms of Reference setting out the scope of the Review.

Phase 2 of the Review will be broadly-scoped and comprehensive, as recommended by the Independent Expert Advisory Panel, the Reserve Bank and the Treasury. Phase 2 of the Review will be organised around the following key topics:

  1. Overarching objectives and the scope, coverage, and coherence of the legislation
  2. Institutional governance, and decision-making
  3. Trans-Tasman co-ordination
  4. Prudential regulation
  5. Supervision and enforcement
  6. Resolution and crisis management
  7. Macro-prudential policy
  8. Resourcing and funding
  9. Miscellaneous issues

The Terms of Reference for phase 2 and the accompanying Q&A are available below:

Material related to phase 2 has been proactively released:

Phase 2 of the Review will be wide-ranging, and the work will take into account the interconnectedness of the issues to be considered.  An initial task of the Review team will be to develop a work programme and identify key deliverables.  This will include advice on the prioritisation and sequencing of workstreams and timelines for the development and introduction of legislation. The Review itself will involve a thorough policy development process and stakeholder engagement and consultation. It is envisaged that most of the major legislative amendments could be advanced within the current Parliamentary term.

Public consultation

The Reserve Bank is an important economic institution. As such, the Review of the Reserve Bank of New Zealand Act 1989 is of public interest and may affect a range of stakeholders. The Review will be managed in an open and transparent manner, with multiple opportunities for public input.

Treasury arranged for a series of industry roundtables and stakeholder consultations to inform the scope of phase 2. The Treasury also received a number of written submissions. A summary of submissions and written submissions received will be released shortly.

Officials will continue to work closely with a range of stakeholders. There will be further opportunities to provide submissions on policy issues and draft legislation once phase 2 is underway.

Proactive release of information

Information relating to the scoping of phase 2 can be found at Reserve Bank Act Review Phase 2 Proactive Release including the Cabinet paper, the Panel report relating to the scoping of phase 2, reports to the Minister of Finance, written submissions on the scope of phase 2, Panel papers and minutes of Panel meetings.

Enquiries

For general enquiries about the Reserve Bank of New Zealand Act Review, please email rbnzactreview@treasury.govt.nz.  The Treasury will respond to enquiries made through this channel as part of its role as the secretariat for the Review.

All media enquiries should be directed to media@treasury.govt.nz.

Last updated: 
Wednesday, 13 June 2018