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Reserve Bank of New Zealand Act 2021

Reserve Bank of New Zealand - Minister’s role

22: Minister's role

You could also call this:

"The Minister helps the Reserve Bank of New Zealand work well and make good decisions."

Illustration for Reserve Bank of New Zealand Act 2021

The Minister has a big role in overseeing the Reserve Bank of New Zealand. You can think of the Minister as the person who makes sure the Bank is working well and doing its job. The Minister is in charge of things like appointing people to the Bank's board and giving advice on economic goals. The Minister also helps make decisions about the Bank's money and foreign exchange. You can read more about these roles in sections like subpart 4, subpart 6, and subpart 7. The Minister works with the Bank to make sure it has enough money and is managing its risks well, as seen in section 208 and subpart 3 of Part 3.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287040.

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Part 2Reserve Bank of New Zealand
Minister’s role

22Minister's role

  1. The role of the Minister is to oversee and manage the Crown's interests in, and relationship with, the Bank and to exercise any statutory responsibilities given to the Minister, including functions and powers—

    Governance

  2. in relation to the appointment and removal of—
    1. members of the board (see subpart 4); and
      1. the Governor (see subpart 6); and
        1. members of the MPC (see subpart 7 and Schedule 3):

          2. Monetary policy functions

        2. to issue a remit for the MPC (see section 122):
          1. to give advice relating to different economic objectives (see section 125):

              1. Financial policy

            1. to issue a financial policy remit (see section 203):

                1. Minimum level of capital and financial risk management

              1. to give directions to the Bank relating to its minimum level of capital and financial risk management (see section 208):

                  1. Foreign exchange functions

                1. to give directions to the Bank to deal in foreign exchange within guidelines and to agree with the Bank on a framework for the management and co-ordination of foreign reserves (see subpart 3 of Part 3):

                    1. Prudential and regulatory functions

                  1. under the prudential legislation (for example, giving consent for the Bank to exercise certain powers and giving advice to the Governor-General about putting an entity into statutory management):

                      1. Other functions

                    1. to add functions if requested by the Bank (see section 11):

                        1. Funding

                      1. to enter into a funding agreement with the Bank and to determine the Bank’s annual dividend (see subpart 3 of Part 5):

                          1. Other

                        1. to review the operations and performance of the Bank under section 194:
                          1. to request information from the Bank under sections 196 and 197, whether for a review or otherwise:
                            1. to participate in the process of setting the Bank’s strategic direction and performance expectations and monitoring the Bank's performance (see Part 5):
                              1. in relation to other matters in this Act or other legislation.

                                1. This section does not limit another Minister’s relationship with the Bank under any other authority.

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