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Statement of Performance Expectations 2023/2024

Tauākī Whāinga Whakatutuki

Our Statement of Performance Expectations (SPE) sets out specific targets that we aim to achieve in the year ahead, and how our performance against those targets will be measured and reported on.

Statement of Performance Expectations 2023/2024
Statement of Performance Expectations 2023/2024

Our Statement of Performance Expectations (SPE) sets out specific targets that we aim to achieve in the year ahead, and how our performance against those targets will be measured and reported on.

We are pleased to publish our Statement of Performance Expectations (SPE) 2023/2024, which has been prepared under the Reserve Bank of New Zealand Act 2021 and should be read together with our Statement of Intent 2022 to 2026 (SoI). 

Reserve Bank of New Zealand Act 2021

Statement of Intent 2022 to 2026

Our performance measures

Our 16 performance measures are based on our 4 outputs.

  • Monetary policy formulation and implementation.
  • Financial stability and prudential regulation and supervision.
  • Stewardship of money, cash and payments.
  • Cooperation with regulatory agencies and other relevant institutions.

Monetary policy formulation and implementation


Te hoahoatanga me te whakatinanatanga kaupapa here moni

$ arrows up and down icon

How we support the Monetary Policy Committee (MPC) to formulate monetary policy and how we manage our balance sheet to support our economic objectives and the stability of financial markets.

Find out more about monetary policy

 

1. We monitor and assess the MPC against the Remit, Charter and Code of Conduct, with a formal review on an annual basis.

2. We have provided the MPC with high-quality research, forecasts and analysis to ensure monetary policy decisions are made in a fully informed manner consistent with the MPC’s Remit.

3. We are transparent and effective in our communications on monetary policy to media, the public, government and market participants.

4. We conduct operations in financial markets and provide standby facilities to implement monetary policy and ensure that short-term market interest rates are within our Board-approved tolerance ranges.

5. Our foreign reserves are effectively managed within the range set by the Minister of Finance to support economic objectives and to ensure markets operate in an orderly fashion.

6. We monitor and manage the level of banking system settlement cash to be within target ranges to facilitate the settlement of day-to-day financial transactions, and provide emergency liquidity
assistance in extraordinary circumstances.

Financial stability and prudential regulation and supervision


Te tūtika ahumoni, me te whakarite ture, āta tirotiro whai whakaaro


The work we do to protect and promote the stability of New Zealand’s financial system.

We do this by:

• acting as a prudential regulator of banks, insurers, non-bank deposit takers and other financial institutions under prudential legislation, and the AML/CFT Act; and
• monitoring the financial system through collecting, analysing and publishing relevant information.

Find out more about our approach to financial stability

Find out more about who we regulate and supervise 

 

7. We identify, monitor and assess opportunities, risks and gaps related to our financial stability objective and promote public awareness and understanding of these opportunities, risks and gaps and our responses.

8. We supervise regulated entities, investigate instances of conduct that (may or are likely to) constitute contraventions of sectoral legislation, policy and standards; and take appropriate action, including enforcement action.

9. We develop, adapt and implement prudential regulatory tools, taking action when appropriate to address identified opportunities, risks and gaps.

Stewardship of money, cash and payments


Te kaitiakitanga o te moni, o te ukauka me ngā whakapaunga


Coins and Moneybag icon

The work we do in:

  • Issuing and managing banknotes and coins — including monitoring and maintaining distribution and quality, monitoring the needs of the public for banknotes and coins, and monitoring the impacts of technological innovation in money.
  • Making sure New Zealand’s money, cash and payments system continues to be fit for purpose and builds towards a sustainable future by considering, for example, Central Bank Digital Currency and private innocation in money.
  • Providing New Zealand dollar settlement accounts to financial institutions and the New Zealand Government.
  • Providing securities settlement and depository services, mainly to financial institutions.

Find out more about our banknotes and coins

 

10. Our payments and settlement systems meet or exceed 99.90% availability on an annual basis and a minimum of 75% of our customers rate our service as satisfactory or better in our annual
customer survey.

11. We monitor and maintain an efficient, resilient and sustainable cash system that meets the public’s needs.

12. We explore the future of money and payments to ensure they are reliable, efficient and support innovation and inclusion.

Engaging with our stakeholders and cooperating with regulatory agencies and other relevant institutions


Te tuitui me te hunga whai pānga, me te tautuku ki ngā hinonga whakarite ture, me ētahi atu hinonga hāngai


How we cooperate and engage with our stakeholders and providing, or facilitating the provision of, information relevant to our objectives.

We do this by:

  • maintaining meaningful relationships with our stakeholders
  • providing or facilitating the provision of, relevant information about our objectives and functions
  • liaising and cooperating with other central banks and relevant international institutions.

Find out more about our relationship charter

Our relationship with other financial regulators

 

13. We undertake a range of engagements with both domestic and international stakeholders to support an understanding of our objectives and key decisions and learn and collaborate on longer‑term strategic challenges.

14. We engage effectively with regulated entities and target at least 75% of respondents rating us as a minimum of 4 out of 5 or equivalent in our annual relationship charter survey.

15. We take a systemic approach and contribute to a sustainable, inclusive and productive economy through our own activities and effective and coordinated partnerships with stakeholders.

16. We operate in a financially responsible manner by managing our expenditure in line with our funding agreement as approved by the Minister of Finance.

How we will measure our performance

We report on our performance measures throughout the financial year to the Treasury. At the end of the financial year, the Board will assess whether we have achieved or not achieved each performance measure.

We will publish a summary of this assessment in our Statement of Performance in our Annual Report at the end of each financial year. If we are unable to achieve any of our targets, we will provide an explanation of the reasons and outline the follow-up actions taken to ensure we will be able to meet them moving forward.