Regulatory Alerts2022-05-17
New Zealand: Financial Sector Assessment Program Technical Note on Contingency Planning and Crisis Management Framework
The International Monetary Fund issued this technical note to assess New Zealand's contingency planning and crisis management framework, highlighting the absence of deposit insurance and strong interdependencies with Australia. The report recommends establishing the Reserve Bank of New Zealand as the sole resolution authority with clear mandates, removing Ministerial consent requirements for remedial supervisory actions, and introducing limited depositor preference to support Open Bank Resolution. It further advises strengthening domestic crisis coordination through the Council of Financial Regulators and expanding trans-Tasman cooperation arrangements to include insurance and financial market infrastructures.
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