RBNZ Act 2021 commences

A new statutory governance board also begins work

RBNZ Act 2021 commences

The Reserve Bank of New Zealand has commenced its new foundational legislation, the RBNZ Act 2021, ushering in a new statutory governance board responsible for all non-monetary decision-making at the central bank.

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The eight-member governance board is chaired by Neil Quigley, who, over the past nine months, has led the interim transition board in overseeing preparations for the changes required under the act.

Quigley said he was pleased and proud to head a group of highly experienced, diverse, and talented directors. He was also confident that its strengthened governance arrangements would benefit the Reserve Bank in the future.

“The next few years will be a critical period for the organisation,” he said. “Expectations of central banks globally have never been higher, and New Zealanders are looking to us to deliver a strong and stable financial system and help steer the economy through what will undoubtedly continue to be challenging times ahead. The act also formalises the role of Te Tai Ōhanga | The Treasury as our new monitoring agency and we welcome the additional oversight this will provide as we work to meet our agreed measures and targets.”

The new board includes the Reserve Bank governor as well as the RBNZ chief executive as members.

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“Our strengthened legislative foundations are a significant step in our wider transformation efforts under which Te Pūtea Matua is evolving into a modern, agile, fit for purpose central bank for Aotearoa,” Governor Adrian Orr said. “We have strong leadership and exceptionally capable people, and I have full confidence in our readiness to meet the increased levels of accountability and transparency required of us. This includes releasing our new Statement of Financial Risk Management, Statements of Prudential Policy, Intent and Performance Expectations later this year. These key strategic documents set out how we approach our work, what we aim to achieve, and how we measure our performance.”