Reviews and Consultation

Public Consultation - third round (Reserve Bank Act Review) - figure description

The Treasury has prepared a text description of the figure Decisions taken and key remaining issues in this consultation.

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Decisions taken and key remaining issues in this consultation


  • Key decisions taken by Cabinet
  • Key remaining issues to be covered in the current consultation
Objectives Supervision and enforcement powers Regulatory perimeter Crisis management
  • ‘Financial stability’ as the high-level objective for the Reserve Bank’s financial policy function
  • There will be an ‘on-site inspection’ power
  • Wider range of formal enforcement powers
  • There will be a single regime for all deposit takers
  • Reserve Bank will be resolution authority, with clear objectives and functions
  • Widen resolution powers (eg statutory bail-in powers)
  • ‘No creditor worse off’ provisions
  • What should the purposes of the Deposit Takers Act be?
  • What decision-making principles should apply under the Deposit Takers Act?
  • Scope of on-site powers
  • Confirmation of additional enforcement tools
  • How will breaches of requirements be reported?
  • How should the regulatory perimeter be defined?
  • How should finance companies be treated?
  • How should the regime deal with smaller entities?
  • How should the flexibility of the perimeter be maintained?
  • Thresholds for using early intervention and resolution powers
  • Liabilities to be subject to bail-in
    Statutory management advisory committee
  • Resolving credit unions and building societies
  • Whether deposit takers should remain subject to CIMA statutory management

* Other details of crisis management are being
developed in parallel to the
public engagement process

Depositor protection Standards and licensing Liability and accountability
  • Formal deposit insurance with a $50,000 limit
  • Funded by a levy on deposit takers, with a Government backstop
  • Standards as the main tool for imposing prudential requirements
  • Director accountability for deposit takers should be enhanced
  • Accountability requirements should be extended to senior executives of deposit takers and insurers*
  • What products should be insured?
  • How should insurance be funded?
  • Who should administer the insurance scheme?
  • What role should the insurer have?
  • Should depositors have preference in resolution?
  • What kinds of standards could be set?
  • How should macro-prudential standards be dealt with?
  • What process should the Reserve Bank go through in setting standards?
  • How should the licensing process for deposit takers work?
  • What types of penalty should apply to breaches of requirements?
  • What should the enhanced duties for directors look like?

* This will be progressed outside the Phase 2 Review




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