Reserve Bank Act Review Third Consultation is now Closed
The Review was split into two phases:
- Phase 1 was completed in 2018. As a result, “supporting maximum sustainable employment” has been added to the economic objectives for the Reserve Bank and a Monetary Policy Committee (MPC) has been created with responsibility for formulating monetary policy. For more information about Phase 1, see Phase 1 of the Reserve Bank Act Review.
- Phase 2 is underway. It is a comprehensive review of the legislative framework, seeking to ensure that the Act is fit for purpose, flexible, and enduring. The details of Phase 2 are outlined below. Answers to frequently asked questions can be found at Questions and answers: Review of the Reserve Bank Act - July 2020.
Phase 2: Safeguarding the future of our financial system
Phase 2 of the Reserve Bank Act Review is a wide-ranging review of the financial policy provisions of the Reserve Bank of New Zealand Act 1989, including those that provide the legislative basis for prudential regulation, supervision, and the crisis management framework.
The first tranche of Phase 2 reforms to be legislated are the institutional reforms, which update the institutional design and accountability requirements of the Reserve Bank of New Zealand and make them closer to those of a Crown entity. The Reserve Bank of New Zealand Bill introduced on 28 July 2020 covers these updates. A copy of the Bill is available at the Parliamentary Counsel Office’s New Zealand Legislation website.
A second tranche of Phase 2 reforms is underway and consultation on these proposals was extended to 23 October 2020, after work was effectively paused by the need to respond to COVID-19. This consultation builds on the Government’s in-principle decisions on the regulation of banks and other deposit-takers and the introduction of a deposit guarantee scheme. Final policy decisions will be taken after consideration of this consultation, followed by legislative drafting.
Work on Phase 2 is being led by a joint Review team of Reserve Bank and Treasury staff.
Progress of Phase 2 of the review
|28 July 2020||Reserve Bank Act Review Phase 2 - July 2020 Proactive Release|
|30 Mar 2020||Phase 2 Review update - 3rd consultation extended|
|13 Mar 2020||Public Consultation - Third round is now open. Closes on 23 October 2020|
|2 Mar 2020||Proactive Release: Documents relating to Review Update|
|18 Dec 2019||Update on the Phase 2 Review|
|11 Oct 2019||Proactive Release: Summary of Submission for Consultation 2|
|16 Aug 2019||Public Consultation - second round is now closed|
Public Consultation: Have your say
Consultation on the measures being introduced in the Reserve Bank of New Zealand Bill took place from November 2018 to January 2019 and from June 2019 to August 2019. With this Bill now introduced to Parliament, the public and stakeholders have the opportunity to be further involved by making a submission for consideration at Select Committee. It is anticipated the Bill will be progressed through the Finance and Expenditure Select Committee, after its first reading later this year (2020).
The third round of consultation in the Review built on the Government’s in-principle decisions on the regulation of deposit-takers and introduction of a deposit guarantee scheme. Final policy decisions will be taken after consideration of this consultation, followed by legislative drafting. When this Bill is introduced to Parliament, the public and stakeholders will have the opportunity to be further involved by making a submission for consideration at Select Committee.
For more information on the third round of consultation, which closed on 23 October 2020, you can visit the third round of public consultation page.
For more information on the second round of consultation, which closed on 16 August 2019, you can visit the second round of public consultation page.
For more information on the first round of consultation, which closed on 25 January 2019, you can visit the first round of public consultation page.
Additional proactively released documents
Additional documents relating to the Review are being proactively released to be transparent and to help inform public debate on the issues under consideration. All Phase 2 releases are published on the Reserve Bank Act Review Phase 2 Proactive Release page. This page contains archived materials supporting the Phase 2 process, Cabinet papers, Panel reports, ministerial briefings. Written submissions to past consultations, are also available here.
Speeches and media releases
Relevant speeches and media releases are published here at Speeches and Media Releases. The Review team will engage with the public throughout the course of the Review to ensure that stakeholders' views are appropriately reflected in the policy development process.
Our mission: Phase 2 Terms of Reference
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. See the Terms of Reference for Phase 2.
Phase 2 of the Review is broadly-scoped and comprehensive, focused on the financial policy provisions of the Reserve Bank Act. Phase 2 of the Review will be organised around nine key topics:
- Overarching objectives and the scope, coverage, and coherence of the legislation
- Institutional governance, and decision-making
- Trans-Tasman co-ordination
- Prudential regulation
- Supervision and enforcement
- Resolution and crisis management
- Macro-prudential policy
- Resourcing and funding
- Miscellaneous issues
The Independent Expert Advisory Panel
An Independent Expert Advisory Panel is assisting with the Review. The Panel is providing input to the policy development process. Find out more at Independent Expert Advisory Panel.
Enquiries? Get in touch
For general enquiries about Phase 2 of the Reserve Bank Act Review, please email [email protected]. The Review team will respond to enquiries made through this channel as part of its role leading Phase 2 of the Review.
All media enquiries should be directed to [email protected].
Alternatively if you want to know more about Phase 1 of the Review, see Phase 1 of the Reserve Bank Act Review.