On 24 June 2019, the Minister announced the second round of consultation for Phase 2 of the Review of the Reserve Bank Act. Read the related media release Safer banks and strengthened bank accountability
The second round of public consultation closed on 16 August 2019.
The second round of consultations has two parts:
- Follow-up consultation on in-principle decisions and additional details of the topics covered in the first round of consultation. These topics were:
- Objectives: What high-level financial policy objectives should the Reserve Bank have?
- Regulatory perimeter: Which financial firms should the Reserve Bank regulate and how should the regulatory perimeter be set?
- Depositor protection: Should there be depositor protection in New Zealand?
- Separation: Should the regulation of financial firms remain with the Reserve Bank?
- Governance: How should the Reserve Bank be governed, including who should make the Reserve Bank’s decisions?
- Consultation on the Reserve Bank’s role in financial policy, including its tools, powers, and approach, covering:
- Prudential tools and powers: What prudential regulatory tools and powers should the Reserve Bank have?
- Macro-prudential policy: What role should the Reserve Bank play in macro-prudential policy?
- Supervision and enforcement: how should the Reserve Bank supervise and enforce prudential regulation?
- Balance sheet functions: How should the Reserve Bank’s balance sheet functions be formulated?
- Crisis management: What features should New Zealand’s bank crisis management regime have?
- Coordination: How should the Reserve Bank coordinate with other government agencies?
- Funding: How should the Reserve Bank be funded and resourced?
Key documents for the second round of consultation
A number of documents support this round of consultation. The two main consultation documents, background paper, and supporting papers are contained in the table below. The table also contains the Executive Summaries of the two main consultation documents as well as a glossary of technical terms.
- Consultation Document 2A: In-principle decisions and follow-up questions on: The role of the Reserve Bank and how it should be governed (PDF 1,527 KB)
- Consultation Document 2B: The Reserve Bank’s role in financial policy: tools, powers, and approach (PDF 3,422 KB)
- Consultation Document 2A - Executive Summary: In-principle decisions and follow-up questions on: The role of the Reserve Bank and how it should be governed (PDF 327 KB)
- Consultation Document 2B - Executive Summary: The Reserve Bank’s role in financial policy: tools, powers, and approach (PDF 384 KB)
- Questions and answers: Phase 2 of the Review of the Reserve Bank Act – second round of consultation
- Glossary Document for Consultation Documents 2A and 2B (PDF 187 KB)
- Background Paper on Bank Crisis Management and Resolution - Review Team (PDF 448 KB)
- Background Paper - Climate Change and Prudential Regulation: Issues in New Zealand - Patricia Wright (PDF 246 KB)
- Background Paper - Macro-prudential Policy in New Zealand: Issues Related to Governance - Caitlin Davies (PDF 375 KB)
- Background Paper - Regulation of FinTech: Jurisdiction Analysis - MinterEllisonRuddWatts (PDF 2,029 KB)