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Reserve Bank of New Zealand Act 2021

Operation of Reserve Bank - Government directions to Bank

176: Review and expiry of all directions given to Bank

You could also call this:

"Checking and ending Bank directions from the Minister"

Illustration for Reserve Bank of New Zealand Act 2021

You can get directions from a minister to the Bank. These directions might have an expiry date. If they do not have an expiry date, the Minister must review them within 5 years. When the Minister reviews a direction, they might talk to the Bank and other people. The Minister will tell the Bank and the people they talked to what they decided. Some directions do not follow these rules, like those under section 77 of the Banking (Prudential Supervision) Act 1989. The Minister does not have to follow these rules if another Act says how to review directions. You can find more information about this in other Acts, like the one that has s 115A.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287348.

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Money and consumer rights > Banking and loansGovernment and voting > Government departments
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Part 4Operation of Reserve Bank
Government directions to Bank

176Review and expiry of all directions given to Bank

  1. A ministerial direction given to the Bank under this Act or another Act may specify its expiry date.

  2. A direction that does not specify its expiry date must be reviewed by the Minister or Ministers within 5 years after the direction was given.

  3. A Minister or Ministers reviewing a direction must, to the extent that they consider it necessary in the circumstances,—

  4. consult the Bank; and
    1. consult any persons that they consider are representative of the interests of persons likely to be substantially affected by the direction.

      1. As soon as practicable after completing the review, the Minister or Ministers must notify the outcome of the review to—

      2. the Bank; and
        1. persons that were consulted under subsection (3)(b).

          1. This section—

          2. does not apply to directions under section 77 of the Banking (Prudential Supervision) Act 1989; and
            1. does not apply, in the case of any other directions given under another Act, if the other Act contains a procedure for reviewing directions.

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