The Reserve Bank's 2013 – 2014 Annual Report (PDF 2MB) describes the Bank's role and efforts in sustaining economic recovery, Governor Graeme Wheeler said today.
Mr Wheeler said that the Reserve Bank affects New Zealanders' lives in a number of ways, including: providing the currency they use, making decisions on the Official Cash Rate that affect their borrowing costs and return on savings; as well as regulating the banks, finance companies and insurers that New Zealanders use.
"We are conscious that the community needs to be confident that we meet high standards. This Annual Report provides information on achievements in each of our statutory functions, and how we strive to be a high-performing small central bank," he said.
The Bank currently has three overarching goals including continuing to strengthen its performance, developing a more integrated approach to Bank policy, and improving Bank infrastructure − while reducing the organisation's risks.
Key developments in meeting these goals in the 2013-2014 year included:
- Ensuring monetary policy was consistent with the maintenance of price stability.
- Establishing a Macro-Financial department to lead analysis and advice on macro-prudential policy, and the introduction of loan-to-value restrictions on home mortgages to reduce financial stability risk and to cool house price inflation.
- Completing the licensing of insurers, putting a licensing regime in place for non-bank deposit takers (such as finance companies), and reviewing the oversight system for the payments system.
- Signing contracts for the design and printing of new banknotes, due to come out in late 2015, and reviewing our currency management procedures, controls and departmental structure accordingly.
- Initiating a review of the Bank's operation of payment systems to establish a roadmap for development of those operations.
- Introducing an annual staff engagement survey, a mentoring programme, and increasing the investment in management and leadership development.
- Financial results show the Bank spent a net $53.3 million on activities covered by its Funding Agreement, made a net profit of $56 million, and paid a $20 million dividend to the Crown.
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