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Reserve Bank of New Zealand Act 2021

Financial and accountability matters - Financial policy remit

204: Contents of financial policy remit

You could also call this:

"What the Minister wants the Reserve Bank to think about when making financial decisions"

Illustration for Reserve Bank of New Zealand Act 2021

The Minister can tell the Reserve Bank what to consider when making financial decisions. You need to know the Bank has to think about being financially stable and following rules. The Minister's instructions must align with the Bank's main goals and the law. The Minister's instructions can cover things like keeping the financial system stable. You have to follow the rules set out in the law, including those about supervising banks. The Minister cannot tell the Bank to do something that goes against its main goals or the law. The Bank has to consider what the Minister says when making decisions. The Minister's instructions are important and must be followed carefully. The Bank's main goal is to keep the financial system stable and secure.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS292986.

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203: Financial policy remit, or

"The Minister's plan for the Reserve Bank's money decisions"

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205: Form, publication, and presentation of financial policy remit, or

"How the Reserve Bank shares its financial plans with the public"

Part 5Financial and accountability matters
Financial policy remit

204Contents of financial policy remit

  1. The financial policy remit may specify or provide for matters that the Minister considers are desirable for the Bank to have regard to in relation to 1 or more of the following:

  2. achieving the financial stability objective:
    1. acting in a way that furthers the objectives or purposes of the prudential legislation:
      1. performing the Bank’s function under section 10(1)(b) (which relates to acting as a prudential regulator and supervisor under the prudential legislation).

        1. A matter under subsection (1) must not be inconsistent with any of the following:

        2. the financial stability objective:
          1. the objectives or purposes of the prudential legislation:
            1. any other provision of this Act or the prudential legislation.