IMF to assess how NZ's financial institutions are prudentially regulated and supervised
The International Monetary Fund (IMF) is preparing to assess the way that financial institutions are prudentially regulated and supervised, a report says in the Reserve Bank Bulletin published today.
The Bulletin report describes the IMF’s Financial Sector Assessment Programme (FSAP) for New Zealand that will start later this year.
New Zealand’s financial sector plays a very important role in supporting economic performance and the improvement in living standards for all New Zealanders. It is crucial that the various functions of the financial system – such as the allocation of funds from savers to borrowers, facilitating an efficient means of transacting, and mitigating economic risk – are equally supported by a robust regulatory framework that is appropriate for New Zealand conditions.
The IMF will examine how New Zealand’s financial institutions are prudentially regulated and supervised by the Reserve Bank, and how New Zealand’s capital markets and financial market conduct are regulated by the Financial Markets Authority (FMA).
A team from the IMF will visit New Zealand twice, in August and November this year, to meet and question New Zealand authorities and hold discussions with industry groups and financial sector entities that are subject to regulation. Recommendations and findings from the FSAP will be published by the IMF in early 2017. The IMF last conducted an FSAP review on New Zealand in 2004.
New Zealand authorities will consider and respond to the results of the FSAP to help ensure that the current regulatory framework is making the best possible contribution to New Zealand’s economic welfare.
Angus Barclay, External Communications Adviser
Ph 04 471 3698, 027 337 1102, [email protected]