How the SOI and the SPE work together
To understand our performance, this SPE needs to be read together with our Statement of Intent (SOI). Our SOI sets out our strategic objectives, and our desired outcomes.
At the end of each year, our annual report provides an assessment of our progress against the key activities in our SOI and the performance measures in our SPE.
Our approach
Our performance measures enable us to assess our service performance each year against our targets.
We regularly review the way we assess and report our performance, to ensure we focus on measuring the impacts we want to have and to clearly articulate to our stakeholders how well we are performing against our desired outcomes.
The measures are grouped into 4 Output classes that tie back to our legislated objectives and functions and allow for year-on-year comparison.
What's new in the SPE
Most of the performance measures in this SPE have been carried over from the previous financial year.
We have reduced the number of:
- output classes
- performance measures, and
- methods and targets within some of our performance measures.
This is relative to our SPE for the 2024/25 financial year, in order to focus better on the performance of our core objectives and functions.
We have introduced:
- a new output class for the Depositor Compensation Scheme (DCS) which came into force on 1 July 2025, with one performance measure
- a new performance measure ‘Public understanding and trust’ (incorporating performance measure 6.2 in the SPE for FY2024/25), and
- a threshold for many of our measures that articulates our tolerance for not completely achieving a measure and assessing that measure as ‘Mostly Achieved’.
Performance measures and our output classes
Economic objective
Our economic objective is achieving and maintaining stability in the general level of prices over the medium term.
We support the MPC to make the best possible decisions for New Zealand, to achieve inflation targets over the medium term, as set out in the MPC Remit.
Performance measures:
- 1.1 The research we provide the MPC supports members in making informed decisions.
- 1.2 The functional support we provide to the MPC and the Board assists MPC and Board members to comply with their procedural responsibilities.
We communicate the MPC’s decisions, considerations and strategy by publishing and publicising Monetary Policy Statements. We supplement Monetary Policy Statements with a range of other communications and outreach, including interviews, speeches and other engagements with media, the public and other stakeholders.
Performance measures:
- 1.3 Monetary policy decisions are effectively communicated.
- 1.4 Monetary policy decisions are effectively implemented.
Financial stability objective
Our financial stability objective is to protect and promote the stability of New Zealand’s financial system.
We undertake a range of work to identify, assess and monitor financial stability risk and vulnerability, and support entities to understand and build capability necessary to manage these risks.
Performance measures:
- 2.1 Key messages from Financial Stability Reports reach intended audiences.
- 2.2 Regulated entities adopt recommendations to improve risk management practices in response to our risk monitoring work.
Promoting resilience in the financial system, and in the financial entities that make up the system, is our key focus. We aim both to reduce the build-up of risk across the financial system, and improve the ability of individual entities and the system as a whole to respond to risks, and absorb shocks.
Performance measures:
- 2.3 Prudential policy proposals are of high quality.
We attach significant value to successfully engaging with our financial system stakeholders. We want our supervision and enforcement activities to motivate regulated entities to comply with and meet our requirements.
Performance measures:
- 2.4 We successfully engage with regulated entities.
- 2.5 Enforcement actions are risk-based, proportionate, and transparent.
- 2.6 We have a fit for purpose resolution framework.
Central Bank objective
Our central bank objective requires us to act as New Zealand’s central bank in a way that furthers the purposes of the Act.
Engaging and collaborating effectively with the public and other stakeholders is vital to our performance.
Performance measures:
- 3.1 We work to increase public understanding and trust.
Our payment and settlement systems and our domestic market facilities support market functioning, financial stability and the economy. A safe, efficient and resilient payment system that enables day-to-day financial transactions is critical to New Zealanders and to the smooth functioning of the economy.
Performance measures:
- 3.2 Financial transactions happen in real time.
- 3.3 ESAS and NZClear systems operate in a highly resilient mode.
- 3.4 Sufficient liquidity is available to support settlements within payment systems.
Reliable and efficient money, cash and payment services are essential to protect and promote the stability of a financial system that works for all. We ensure that the supply and integrity of our currency and physical cash, along with the system that moves and stores it, meets the needs of the public.
Performance measures:
- 3.5 We monitor and maintain an efficient, resilient and sustainable cash system.
We hold and manage foreign reserves in order to be able to intervene in the New Zealand dollar (NZD) market for financial stability or monetary policy reasons. Foreign reserves are safe and liquid assets held in currencies such as United States dollars, Euros, and Australian dollars.
Performance measures:
- 3.6 Foreign reserves and foreign intervention capacity are maintained within mandated limits.
Depositor Compensation Scheme objective
Our Depositor Compensation Scheme objective is to contribute towards protecting and promoting financial stability.
The DCS contributes to the resilience of New Zealand’s financial system by supporting resolution measures aimed at minimising the impact of a deposit taker’s failure.
Performance measure:
4.1 Processes, resources and systems for handling a payment and resolution support are ready to deploy.