Terms of reference for the Trans-Tasman Council on Banking Supervision
The Trans-Tasman Council on Banking Supervision supports the development of a single economic market in banking services. The Council will promote a joint approach to trans-Tasman banking supervision that delivers a seamless regulatory environment.
The banking system and bank supervision, including crisis preparedness, remain a focus for the Council in recognition of its systemic importance. However, the mandate for the Council also covers potential issues relating to financial stability, efficiency, and integration throughout the wider financial sector.
In particular, the Council will:
- enhance cooperation on the supervision of trans-Tasman banks and other financial institutions and information sharing between respective supervisors;
- promote and review regularly trans-Tasman crisis response preparedness relating to events that involve banks and other financial institutions that are common to both countries; and
- guide the development of policy advice to both governments, underpinned by the principles of policy harmonisation, mutual recognition and trans-Tasman coordination.
The Council will be chaired jointly by the Secretaries to the Treasuries of Australia and New Zealand, and will also comprise senior officials from the RBA, APRA, ASIC, the RBNZ and the FMA.
The Council may establish working committees drawn from the respective agencies to help it in reaching views on particular matters, and may delegate aspects of the work to these committees where appropriate. Where any of the issues considered by the working committees have a direct interest for any other agencies, these parties will be invited to participate.
The Council will meet with industry participants as necessary and will seek to facilitate the integration of the two markets to the greatest extent possible, while maintaining the safety, stability and efficiency of both financial systems, and protection of sovereign interests as determined by the respective governments.
The existence of the Council does not in any way derogate from the existing statutory rights and responsibilities of the respective authorities.
The Council will be responsible to the Australian Treasurer and the New Zealand Minister of Finance and report to them prior to their annual bilateral meetings.