New Zealand: Financial Sector Assessment Program: Technical Note-Macroprudential Institutional Framework and Policies
IMF Staff Country Reports, May 10, 2017
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- New Zealand: Financial Sector Assessment Program: Technical Note-Macroprudential Institutional Framework and Policies
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Bibliographic details
- Published: May 10, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475599909.002
Executive assessment
- The Technical Note assesses the macroprudential institutional framework and policies in New Zealand.
- Conclusion: New Zealand has a strong institutional framework for macroprudential policy.
Institutional structure and mandates
- The framework is based on a clear mandate for financial stability operationally clarified by a memorandum of understanding.
- The Reserve Bank of New Zealand is the single prudential regulator with responsibility and authority for supervision of financial institutions and macroprudential policies.
- Foundational elements of the framework include:
- A clear mandate for financial stability.
- Independent decision making.
- Transparent communication.
- External accountability.
Strengths identified
- Single regulator model (Reserve Bank of New Zealand) centralizes responsibility and authority for supervision and macroprudential policy.
- Clear legal and operational mandate for financial stability supported by a memorandum of understanding.
- Institutional design supports independent decisions, transparent communication, and external accountability.
Areas for improvement / Policy recommendations
- Institutional arrangements could be strengthened further by making the procedures to adjust the macroprudential framework more transparent.
Publication and metadata (as provided)
- Publication date: May 10, 2017
- Series: IMF Staff Country Reports
- Issue: 118
- Volume: 2017
- Pages: 34
- DOI: https://doi.org/10.5089/9781475599909.002
- Stock No: 1NZLEA2017006
- ISBN: 9781475599909
- ISSN: 1934-7685
- Subjects: Banking, Financial institutions, Financial sector policy and analysis, Financial sector stability, Housing, Housing prices, Macroprudential policy, Mortgages, National accounts, Prices
- Keywords include: bank, bank securities, banking system, banks in New Zealand, core funding ratio, CR, equity price, Financial sector stability, Global, house price, house price overvaluation, Housing, housing loan, housing market, housing price inflation, Housing prices, ISCR, liquidity Policy, LVR restriction, Macroprudential policy, Mortgages, price, price inflation, Reserve Bank's Domestic Market Operations
International Monetary Fund. Monetary and Capital Markets Department "New Zealand: Financial Sector Assessment Program: Technical Note-Macroprudential Institutional Framework and Policies", IMF Staff Country Reports 2017, 118 (2017), May 10, 2017. DOI: https://doi.org/10.5089/9781475599909.002
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- Country Report