New Zealand’s financial system remains sound and resilient, and the Reserve Bank is undergoing significant innovation to prepare for the future, according to the Bank’s 2017-18 annual report released this week.
“The ongoing review of the Reserve Bank Act, and more recent performance and relationship management initiatives, will ensure that there is no ‘business as usual’ for us for some time to come,” said Governor Adrian Orr.
“Our recent priorities have included changes to our currency operations model, our digital capability, both internally and with our payment systems, our relationship management, our prudential responsibilities, and our monetary policy targets and decision-making structures.
“No stone is being left unturned by these multi-year initiatives.
“A highlight of the year has been is the Reserve Bank returning $430 million, its third largest dividend, to the Crown.”
Other highlights include:
- Establishing new vision for the bank – A Great Team, Best Central Bank – that will involve significant changes in culture, capabilities and communication.
- Launching a world-leading bank financial strength dashboard, enabling bank customers and investors to monitor the financial health of banks.
- Working with Treasury on the Government’s review of the Reserve Bank of New Zealand Act, including Phase 1 changes to the objectives of monetary policy, and the terms of reference for Phase 2.
- Initiating work, under the new policy targets agreement, on how best to contribute to maximising sustainable employment in the conduct of monetary policy.
- Jointly with the Financial Markets Authority beginning a review of culture and conduct in the NZ banking and insurance sectors.
- Introducing visual summaries of key points of the Monetary Policy Statement and Financial Stability Report to make them accessible to general audiences.
- Completing Phase 1 of the Currency Cycle Transformation Programme with delivery of a comprehensive strategic assessment covering cash demand, currency operating models, technology developments and digital currency.