Regulation and supervision
The Reserve Bank regulates banks, insurers and non-bank deposit takers (including finance companies that take deposits from the public, building societies and credit unions), for the purpose of promoting the maintenance of a sound and efficient financial system.
The Bank’s approach to prudential supervision and regulatory policy-making are described in our Statements of approaches.
The Bank is also one of three supervisors tasked with ensuring firms meet obligations designed to help deter and detect money laundering and terrorist financing (known as anti-money laundering or AML).
The Reserve Bank of New Zealand is the prudential regulator and supervisor of all insurers carrying on insurance business in New Zealand, and is responsible for administering the Insurance (Prudential Supervision) Act 2010.
This section provides information on the prudential regulation of non-bank deposit takers (NBDTs) as carried out by the Reserve Bank under the Non-bank Deposit Takers Act 2013.
The Reserve Bank supervises banks, non-bank deposit takers and life insurers to ensure they meet obligations designed to help deter and detect money laundering and terrorist financing. Money laundering is the way criminals disguise the illegal origins of their money. Financers of terrorism use similar techniques to try and avoid detection by authorities, and to protect the identity of those providing and receiving money for funding acts of terrorism.
The Reserve Bank oversees New Zealand financial market infrastructures (FMIs), such as payment and settlement systems, for the purpose of promoting the maintenance of a sound and efficient financial system. FMIs are a critical element of the financial system and are highly relevant for the Reserve Bank’s core responsibilities that stem from its financial stability objective.
The International Monetary Fund (IMF) undertook a Financial Sector Assessment Programme (FSAP) for New Zealand in 2016, with the findings and recommendations released in May 2017. An FSAP is a comprehensive review of a country’s financial system, with a particular focus on the quality of financial sector regulation. The previous New Zealand FSAP was conducted over 2003-04.
The Reserve Bank of New Zealand has issued current and expired notices.
The Bank’s approach to prudential supervision and regulatory policy-making are described in the Statements of policy-making, supervisory and enforcement approaches.
There are many potential incidents that could directly or indirectly impact the financial system in a way that could significantly damage or impede the soundness or efficiency of the financial system.
The Reserve Bank has now completed its stocktake of the prudential requirements for banks and non-bank deposit takers (NBDTs). The objective of the stocktake was to identify ways to improve the efficiency, clarity, and consistency of the regulatory requirements in those sectors. This has led to several strands of work to implement improvements identified in the stocktake.