External-expert-reviews-forecasting-processes

External-expert-reviews-forecasting-processes

An external central banking expert has commended the Reserve Bank’s forecasting and monetary policy decision-making processes.

As part of good practice peer review, the Bank regularly commissions reviews by external experts of its forecasting and monetary policy decision-making processes.  It has modified its processes over the years in light of their findings.

What-we-do

What-we-do

The Reserve Bank has released a new video explaining its three key roles: managing inflation; producing currency; and regulating banks, finance companies and insurers.

Using three animated characters mixed with real life situations, the one minute video explores the Bank’s role in the NZ economy and financial system, giving the public a better understanding of what it does and why.

Looking-at-the-Stars

Looking-at-the-Stars

Understanding key trends in the economy is crucial for the Reserve Bank, even though the trends can only be estimated and never directly observed and measured.

Assistant Governor and Head of Economics Dr John McDermott said today that three trends were particularly important: the neutral interest rate; potential output growth; and the equilibrium real exchange rate.

Bulletin-article-reviews-outcomes-of-IMF’s-Financial-Sector-Assessment-Programme

Bulletin-article-reviews-outcomes-of-IMF’s-Financial-Sector-Assessment-Programme

The Reserve Bank has released a Bulletin article reviewing the outcomes of the International Monetary Fund’s (IMF) latest Financial Sector Assessment Programme (FSAP) for New Zealand.

An FSAP is a comprehensive review of a country’s financial system against international standards, with a particular focus on the quality of financial sector regulation.

Reserve-Bank-outlines-stance-on-cyber-issues

Reserve-Bank-outlines-stance-on-cyber-issues

Firms in the finance sector, regulators, and other authorities all have a part to play in managing cyber security risks while still benefiting from the opportunities of new financial technology.

“The dynamic cyber environment means organisations have to be nimble in their approach to cyber security - focused on outcomes, rather than prescriptive compliance exercises,” Reserve Bank Head of Prudential Supervision, Toby Fiennes, said in a speech delivered today to the Future of Financial Services conference, in Auckland.

Reserve-Bank-says-lower-external-debt-is-encouraging-but-some-risks-remain

Reserve-Bank-says-lower-external-debt-is-encouraging-but-some-risks-remain

A large improvement in New Zealand’s net foreign liabilities as a share of GDP since 2009 makes the economy less vulnerable to shocks, Deputy Governor Geoff Bascand said in a speech today.

“New Zealand’s net foreign liabilities – what we owe to the rest of the world, broadly speaking – reached nearly 85 percent of GDP at the start of 2009 but now they are down to 58.5 percent of GDP, their lowest level since the late-1980s,” Mr Bascand said.

Reserve-Bank-consults-on-what-should--qualify-as-bank-capital

Reserve-Bank-consults-on-what-should--qualify-as-bank-capital

The Reserve Bank has started a public consultation about what type of financial instruments should qualify as bank capital.

Capital regulations address not only the minimum amount of capital that banks must hold, but also the type of financial instruments that qualify as capital. The consultation that starts today is about the nature of financial instruments that are suitable, rather than the amount of capital.

Reserve-Bank-and-MBIE-open-public-consultation-on-foreign-margin-requirements-for-OTC-derivatives

Reserve-Bank-and-MBIE-open-public-consultation-on-foreign-margin-requirements-for-OTC-derivatives

The Reserve Bank of New Zealand and the Ministry of Business, Innovation and Employment have started a public consultation on the implications for New Zealand of foreign margin requirements for over-the-counter derivatives.

New Zealand has no margin requirements in over-the-counter derivatives, but several banks registered to operate in New Zealand will likely have to comply with margin rules being implemented in foreign jurisdictions. Margin is collateral exchanged by derivative market participants in order to protect against the risk posed by credit exposures and to reduce the risks of financial market contagion if a derivative contract counter-party defaults.

Brighter-Money-banknotes--security-features

Brighter-Money-banknotes--security-features

The Reserve Bank has developed a short video to help the public identify the ‘real deal’ Brighter Money banknote.

The video explores the banknote’s sophisticated security features, showing the public how to identify a genuine banknote by the ‘look, feel and tilt’ sensory approach used by other central banks to identify a counterfeit.

50-years-of-decimal-currency

50-years-of-decimal-currency

Today signals 50 years of decimal currency in New Zealand and the Bank is marking the anniversary with a new display in its museum and education centre.

This coincides with a new Bulletin article titled “A litmus test for society: Reserve Bank decimal note designs 1967-2017” which traverses New Zealand’s currency as it showcases national and cultural identity. It is accompanied by a downloadable timeline poster showing all seven series of Reserve Bank notes released since 1934.