Reserve Bank of New Zealand Assistant Governor for Financial Stability Angus McGregor outlined the central bank’s medium-term prudential priorities in remarks to the Financial Services Council Conference. The approach centers on maintaining proportionate, risk-based and evidence-informed regulation, adopting a forward-looking and system-wide view of financial risks, and sustaining constructive industry relationships while strengthening supervisory evidence, assurance and accountability. The priorities will guide implementation of the Deposit Takers Act and the review of the Insurance (Prudential Supervision) Act. Under a “trust and verify” supervisory approach, firms will be expected to demonstrate compliance rather than only attest to it. In the latest Relationship Charter survey, 89% of respondents rated their supervisory relationship as good or very good, while 80% gave the same rating to the prudential policy consultation process. Firms also sought clearer communication, better coordination and greater visibility of forthcoming work. The Reserve Bank will publish an issues paper later in August on modernizing New Zealand’s payments system and seek feedback on the issues identified. It will also release work on the future of banking in September, examining global forces shaping banking and their potential implications for New Zealand’s banking sector and regulatory environment.
Reserve Bank of New Zealand2026-08-13
Reserve Bank of New Zealand outlines prudential priorities and forthcoming payments and banking work
The Reserve Bank of New Zealand outlined prudential priorities focused on risk-based regulation, forward-looking system oversight and evidence-backed supervision. The approach will guide deposit-taker and insurance reforms, with firms expected to demonstrate compliance. An issues paper on payments modernization is due later in August, followed by work on the future of banking in September.