Have Your Say On The Proposed Changes To The Reserve Bank Of New Zealand Act 1989
The Finance and Expenditure Committee is calling for submissions on the Reserve Bank of New Zealand Bill.
Changes to the Reserve Bank of New Zealand Act 1989 will occur across two pieces of legislation. The Reserve Bank of New Zealand Bill follows the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018. Both pieces of legislation have come out of the Government’s review into the 1989 Act.
The purpose of the Reserve Bank of New Zealand Bill is to amend the Bank’s governance, accountability and transparency, and funding arrangements. Among other amendments, the bill introduces a new objective for the Reserve Bank of protecting and promoting the stability of the financial system in New Zealand.
The bill would make these amendments by:
· strengthening the institutional arrangements that govern the Reserve Bank. Specifically, the bill would do this by creating a new governance board for the Reserve Bank. The board would be appointed by the Minister of Finance.
· requiring the Minister of Finance to issue a financial policy remit to the Reserve Bank regarding prudential policy.
· establishing a more robust process for the Minister of Finance and the Reserve Bank to agree to the Bank’s funding. The funding agreement will cover the Bank’s operating and capital expenditure.
· bringing the Reserve bank under within the scope of the Ombudsmen Act 1975, and the Public Audit Act 2001. These amendments would enable the Ombudsmen and the Auditor-General to review the activities of the Bank. The Treasury would be charged with a monitoring role over the Bank’s operations.
The closing date for submissions for the Reserve Bank of New Zealand Bill is 4 February 2021.
The committee is due to report back to the House on this bill by 8 June 2021.
Tell the Finance and Expenditure Committee what you think
Make a submission on the Reserve Bank of New Zealand Bill by 4 February 2021.