Maintaining monetary and financial stability and delivering on our commitments
The Reserve Bank of New Zealand – Te Pūtea Matua – is committed to maintaining the soundness of New Zealand’s financial system and supporting economic recovery through unanticipated and unprecedented challenges.
“We take our commitment as kaitiaki (guardian) of New Zealand’s financial system seriously. Our latest Annual Report details how we have delivered against our priorities and allows you to hold us to account,” Governor Adrian Orr said when releasing the Annual Report for 2019-2020.
“Although the COVID-19 pandemic disrupted some of our progress, we still achieved a lot,” Mr Orr says.
“The Reserve Bank helped cushion the initial economic blow by promoting cash flow and confidence in the financial system. We acted to maintain monetary and financial stability and offer broad support to the Government, financial institutions and the people of New Zealand.”
While supporting New Zealand’s recovery from the economic impact of the pandemic has been a key focus for the Reserve Bank, it also undertook a wide and comprehensive range of initiatives.
Alongside our work to respond to COVID-19, other key highlights covered in this year’s Annual Report include:
- Successfully launching a new payment and settlement system;
- Completing our bank capital requirement decisions;
- Supporting work to modernise the Reserve Bank’s governance, operating powers and objectives through new Reserve Bank legislation;
- Undertaking significant consultation and policy work on the Future of Cash – Te Moni Anamata programme;
- Strengthening our team’s capability and capacity while growing a diverse and inclusive workforce;
- Continuing to embed our Te Ao Māori and Climate Change strategies; and
- Agreeing a new Funding Agreement for the next five years.
Our actions throughout this time demonstrated the strength of working collectively and collaboratively with financial services and other regulators. This approach enabled us to be agile, relevant and a cornerstone of New Zealand’s economy and society.
Our surplus for the year is $371 million. While this is an increase of $128 million on the previous financial year, we have recommended, and the Minister of Finance has agreed, that no dividend will be paid to the Crown for 2019-20.
Given the uncertainty about further actions that might be needed to achieve our policy objectives and the impacts of COVID-19 on the New Zealand economy, we felt this was a prudent approach.
“We have a vision of being a Great Team and Best Central Bank. This applies to our activities, our people and the way we interact and engage with our stakeholders. We operate transparently and are open to learn and adapt as necessary.”