Financial stability
One of the Reserve Bank’s core functions is to promote a sound and efficient financial system.
There are a number of ways the Reserve Bank helps to maintain financial stability, including through the regulation and supervision of banks, non-bank deposit takers and insurers, promoting the smooth operation of financial markets, and building sound financial market infrastructure.
It is also important to understand developments that could make the financial system vulnerable to instability, and respond appropriately. The Reserve Bank conducts regular surveillance of financial risks and reports on its assessments in the six-monthly Financial Stability Report.
- Memorandum of Understanding between the Minister of Finance and the Governor of the Reserve Bank of New Zealand
- A new macro-prudential policy framework for New Zealand - final policy position (PDF 279.37 KB)
- Unpacking the toolkit: the transmission channels of macro-prudential policy in New Zealand (PDF 898.97 KB)
- Macro-prudential policy - implementation
- Macro-prudential policy FAQs
- Construction exemption categories from LVR restrictions - Q&As (PDF 98.71 KB)
Temporary limits on high loan-to-value ratio (LVR) residential mortgage lending have been in place since October 2013. The restrictions have been revised over time, with the most recent changes announced in the November 2018 Financial Stability Report.
This information is designed to provide a broad overview of the structure of the New Zealand financial system and background information for the Financial Stability Report (FSR).
