Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Introduction Of Bill Marks Exciting New Phase For Te Pūtea Matua

The Reserve Bank of New Zealand – Te Pūtea Matua – has welcomed the introduction of a Bill that sets out the organisation’s future institutional and governance arrangements. The Reserve Bank of New Zealand Bill was introduced to Parliament today by Minister of Finance Grant Robertson.

This is the first of two bills resulting from the Phase 2 review of the Reserve Bank of New Zealand Act 1989. As part of the broad-ranging review, the Government has decided that the current Act will be replaced with two new pieces of legislation – the ‘Reserve Bank Act’ and a ‘Deposit Takers Act’.

The Bill focuses on reforming the overall institutional, governance, accountability, and funding arrangements of the Bank. It implements decisions taken by Cabinet in December last year and in March and June this year.

Reserve Bank Governor Adrian Orr says the changes will ensure that the Bank’s legislative framework remains robust and fit-for-purpose for the years ahead.

“The Bill’s introduction to Parliament today is a significant step forward in modernising New Zealand’s monetary and financial stability framework, as well as the Reserve Bank’s operating powers and objectives.

“This is an important milestone for the Reserve Bank, and will update legislation that is 30 years old. It is an exciting stage in the Bank’s history, as we work together with the Government in resetting the foundations of the organisation,” Mr Orr said.

“The proposed legislative changes will re-shape the Reserve Bank as we know it, so I encourage all New Zealanders to have their say when the Bill goes through the Select Committee process.”

The Bill is expected to pass into law by September 2021, with full commencement targeted by July 2022 after a nine-month transition period.

Key provisions of the Bill include:

  • adding an overarching financial stability objective, to complement the recently updated monetary policy objectives;
  • strengthening decision-making through moving from a single decision maker to a board model;
  • ensuring operational independence is balanced with appropriate accountability, with a number of changes to update the Reserve Bank’s accountability and reporting frameworks to align with state sector practice;
  • providing for a Financial Policy Remit issued by the Minister, setting out matters that the Reserve Bank board must have regard to when to setting and implementing its strategic approach to financial stability;
  • increasing accountability and transparency in the Reserve Bank’s management of foreign reserves, by requiring the Reserve Bank and the Minister to agree a Foreign Reserves Management and Co-ordination Framework;
  • changes to the funding model to promote transparency and allow for appropriate recovery of costs, through industry levies and fees;
  • providing the Council of Financial Regulators with a statutory mandate to support effective and responsive regulation of the financial system by facilitating cooperation and coordination between its members; and
  • expanding the Reserve Bank’s functions in respect of cash, including supporting public confidence in banknotes by enabling the Reserve Bank to set standards for devices that check the authenticity and/or quality of banknotes.

More information:

© Scoop Media

Business Headlines | Sci-Tech Headlines


Mining: OceanaGold Announces Receipt Of WKP Mining Permit

MELBOURNE, Australia, Aug. 6, 2020 /CNW/ - OceanaGold Corporation (TSX: OGC) (ASX: OGC) (the 'Company') is pleased to announce it has received the mining permit for Wharekirauponga ('WKP') on the North Island of New Zealand. ... More>>


Economy: COVID-19 Lockdown Has Widespread Effects On Labour Market

In the June 2020 quarter, the seasonally adjusted unemployment rate fell to 4.0 percent, down from 4.2 percent last quarter, while underutilisation rose, Stats NZ said today. More>>


NZ Post: New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3

New research by NZ Post into how the COVID-19 response has impacted the way Kiwis shop online, shows online shopping increased 105%* when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently. Online spend peaked ... More>>


Banking: Westpac NZ Lowers Merchant Fees For Small Businesses

Westpac NZ is rolling out a new merchant fee pricing structure that will lead to cost savings for more than 10,000 small and medium Kiwi businesses, and could make contactless transactions more widely available for customers. On 1 September, most ... More>>

REINZ: Million Dollar Plus Property Sales Increase 11.7% Nationally

The number of properties sold around the country for one million dollars or more during the first half (H1) of 2020 increased by 11.7% compared to H1 2019, with 5,426 million-dollar plus properties sold (up from 4,858 in H1 2019) according to the Real ... More>>

Waste: Government To Regulate Plastic Packaging, Tyres, E-Waste

The Government is stepping up action to deal with environmentally harmful products – including plastic packaging, tyres and e-waste – before they become waste. As part of the wider plan to reduce the amount of rubbish ending up in landfills, ... More>>


Antarctica NZ: Ice-Olation

Antarctica New Zealand is gearing up for a much reduced season on the ice this year and a very different deployment to normal! Before they head to one of the remotest places on the planet, all personnel flying south with the New Zealand programme will ... More>>


QV Valuations: July House Price Index Illustrates Market Resilience

According to the July 2020 QV House Price Index (HPI) results out today , property values recorded a marginal increase, up 0.2% over the month. This is somewhat of a turnaround from June, after the national index edged 0.2% lower. More>>


Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>


FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>