Proposals target financial stability and efficiency
The Reserve Bank (RBNZ) has opened consultations on the next set of standards under the Deposit Takers Act 2023 (DTA) and an Issues Paper on the crisis management framework.
Deputy Governor Christian Hawkesby (pictured above) stressed the importance of these standards in aligning New Zealand’s financial system with international best practices.
Proposals target financial stability and efficiency
The consultation covers proposals for nine non-core standards, including governance, risk management, and lending, which licensed deposit takers such as banks and credit unions must comply with by 2028.
“Our policy proposals are tailored to promote financial stability and a sustainable, productive economy that is competitive, efficient, and inclusive,” Hawkesby said.
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Crisis management framework also under review
In addition to the standards, RBNZ is seeking feedback on its approach to operationalising the new crisis management regime under the DTA.
“An effective crisis management regime is essential for minimising serious economic damage and costs,” Hawkesby said, highlighting the role of these regimes in maintaining a dynamic financial system.
Public feedback invited until November 22
The RBNZ invites stakeholders to provide feedback on both the proposed standards and the crisis management framework by November 22. The results will inform the final issuance of standards and RBNZ’s Statement of Approach to Resolution.
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