This article discusses the Reserve Bank of New Zealand Amendment Act 2006, passed in October, which implements the Government’s response to the recommendations of the Trans-Tasman Council on Banking Supervision. The Act amends part of the existing Act passed in 1989 and is being matched by equivalent legislation in Australia. The legislation provides greater assurance of cooperation between New Zealand and Australian regulators by imposing obligations on them to consult each other and to avoid actions that may have a detrimental effect on financial stability, without unduly constraining the actions of the regulators. There have also been some other minor amendments to the 1989 Act, which are also discussed in the article.