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Reserve Bank of New Zealand Act 2021

Reserve Bank of New Zealand - Board of Bank and its members - Collective duties of board

47: Bank must operate in financially responsible manner

You could also call this:

"The Bank must be careful with its money and follow the rules."

Illustration for Reserve Bank of New Zealand Act 2021

The board of the Bank must make sure it operates in a financially responsible manner. You can think of this as the board being careful with the Bank's money and assets. The board must also follow certain rules, such as those outlined in section 210(1)(c) and section 208, to ensure the Bank is managed properly.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287074.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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46: Manner in which functions must be performed, or

"How the Reserve Bank must work efficiently and help the public"

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48: Subsidiaries and other interests, or

"The Bank must follow rules about companies it owns or is involved with."

Part 2Reserve Bank of New Zealand
Board of Bank and its members: Collective duties of board

47Bank must operate in financially responsible manner

  1. The board must ensure that the Bank operates in a financially responsible manner and, for this purpose, that it prudently manages its assets and liabilities.

  2. In particular, the board must take all reasonable steps to ensure that—

  3. the Bank’s expenditure complies with the requirements imposed under section 210(1)(c); and
    1. the Bank complies with a direction given under section 208.

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