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Reserve Bank of New Zealand Act 2021

Central bank functions - Foreign exchange - Foreign reserves management and co-ordination framework

147: Review of framework

You could also call this:

"Checking and improving the banking rules"

Illustration for Reserve Bank of New Zealand Act 2021

The Bank and the Treasury must review how the framework is working within 5 years after it starts and then every 5 years after that. You will see them review the framework again if a direction is issued under section 134. They can also review the framework at any other time they choose. When the Bank and the Treasury do the review, they must think about whether the framework needs any changes and report their findings to the Minister. The Bank must then publish this report on their website as soon as possible after giving it to the Minister. If a direction is issued under section 134, the Minister and the Bank will try to agree on any changes needed to the framework. The Minister can make changes to the framework if they think it is necessary and they cannot agree with the Bank. This does not stop the Minister and the Bank from agreeing to make changes to the framework at any time they want.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS321312.

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146: Minister must have regard to framework when issuing direction under section 134, or

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Part 3Central bank functions
Foreign exchange: Foreign reserves management and co-ordination framework

147Review of framework

  1. The Bank and the Treasury—

  2. must review the operation of the framework within 5 years after the first framework comes into force and then at subsequent intervals of not more than 5 years; and
    1. must review the operation of the framework as soon as practicable after a direction is issued under section 134; and
      1. may review the operation of the framework at any other time.

        1. In carrying out the review, the Bank and the Treasury must—

        2. consider whether any amendments to the framework are necessary or desirable; and
          1. report on the findings to the Minister.

            1. The Bank must publish the report on an Internet site maintained by, or on behalf of, the Bank as soon as practicable after giving it to the Minister.

            2. If a direction is issued under section 134,—

            3. the Minister and the Bank must take all reasonable steps to agree on any amendments to the framework that are necessary or desirable to ensure that the framework is consistent with the direction; but
              1. the Minister may impose amendments on the framework if the Minister is satisfied that—
                1. the amendments are necessary or desirable to ensure that the framework is consistent with the direction; and
                  1. the Minister has been unable to reach agreement with the Bank on those amendments after having taken all reasonable steps to do so.

                  2. This section does not prevent the Minister and the Bank from agreeing to amend or replace the framework at any time.