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Reserve Bank of New Zealand Act 2021

Operation of Reserve Bank - Government directions to Bank

174: Procedure for ministerial directions

You could also call this:

"How the Minister gives instructions to the Reserve Bank"

Illustration for Reserve Bank of New Zealand Act 2021

You need to know what happens when a Minister wants to give a direction to the Reserve Bank. The Minister must talk to the Bank before giving the direction. They must then publish the direction in the Gazette and give a copy to the House of Representatives. When a Minister gives a direction, they can change it or replace it in the same way. You can find more information about this by looking at the Reserve Bank of New Zealand Act. A Minister can also cancel a direction by sending a notice to the Bank. The Minister must publish the notice in the Gazette after cancelling a direction. This is how the Minister gives and cancels directions to the Bank. The Minister follows these steps to make sure everything is done 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=LMS287347.

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Topics:
Money and consumer rights > Banking and loansGovernment and voting > Government departments
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173: Bank must comply with directions given under statutory power of direction, or

"The Bank must follow instructions given to it by the government when doing its job."

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175: When procedural requirements for directions do not apply, or

"When rules about telling banks what to do don't apply"

Part 4Operation of Reserve Bank
Government directions to Bank

174Procedure for ministerial directions

  1. A Minister who proposes to give a direction to the Bank under this Act or another Act must consult with the Bank before giving the direction to the Bank.

  2. As soon as practicable after giving the direction, the Minister must—

  3. publish it in the Gazette; and
    1. present a copy of it to the House of Representatives.

      1. The direction may be amended or replaced in the same way as it may be given.

      2. A Minister who is entitled to give a direction to the Bank is also entitled to revoke it by notice in writing to the Bank, and, as soon as practicable after doing so, the Minister must publish that notice in the Gazette.

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