Reserve Bank Reviews Outcomes of IMF’s Assessment Programme
Bulletin article reviews outcomes of IMF’s Financial Sector Assessment Programme
The Reserve Bank has released a Bulletin article reviewing the outcomes of the International Monetary Fund’s (IMF) latest Financial Sector Assessment Programme (FSAP) for New Zealand.
An FSAP is a comprehensive review of a country’s financial system against international standards, with a particular focus on the quality of financial sector regulation.
The Bulletin article explains the considerable amount of preparatory work that the Reserve Bank and other New Zealand agencies undertook to support the IMF’s two missions to New Zealand in 2016.
The results of the IMF’s assessment were released in early May 2017. They included more than 100 recommendations, many of them directed at the Reserve Bank given its broad range of financial system responsibilities.
The Reserve Bank is actively considering the recommendations in its areas of responsibility and the extent to which these would support the Reserve Bank's statutory purpose of promoting and maintaining a sound and efficient financial system.
Many of the specific FSAP recommendations dovetail with on-going policy and supervisory initiatives. Examples include the bank director attestation review, the review of registered bank capital requirements, legislative reform for the financial markets infrastructure regime, the review of the Insurance (Prudential Supervision) Act, and the five-year anniversary review of the macro-prudential policy framework in 2018.