Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Reserve Bank Amendment Act

News Release
Reserve Bank Amendment Act
14 8 03


The third reading of the Reserve Bank of New Zealand Amendment Bill this afternoon means that the Reserve Bank's governance and financial system oversight arrangements are to change slightly.

The key governance change is that the Governor no longer chairs the Bank's Board of Directors, the chair being a non-executive director appointed by the non-executive directors. The reason for this change is that the previous arrangement created a potential conflict of interest, in that the Governor chaired the committee assessing his own performance, as noted in the monetary policy review conducted in 2001 by Professor Lars Svensson.

In addition, the Bank's Deputy Governor ceases to be a Board member, although the Governor remains a member. The Board is required to issue an annual report assessing the Governor's and Bank's performance, as it has done in recent years.

The legislation, however, does not change the role of the Board of Directors and does not affect the role of the Governor in managing the Bank. The Board does not have executive authority over the Bank, its primary task being to monitor the performance of the Governor and the Bank on behalf of the Minister of Finance. The Governor continues to be responsible for all Bank decisions, including setting monetary policy.

Some technical changes are also made to the Bank's powers in relation to its financial stability role. Among these are enhanced restrictions on the use of the word "bank" and its derivatives, aimed at ensuring that non-bank financial institutions are not able to pass themselves off as registered banks and so mislead the public. There are a number of changes to bank registration and supervision requirements, including, for example, consent to significant ownership change.

The legislation also gives the Bank formal responsibility for overseeing the payment system and provides for finality of payments settled through designated payment systems.

A more detailed description of the amending legislation can be viewed on the Reserve Bank's website at www.rbnz.govt.nz.

ENDS


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news