The Reserve Bank of New Zealand has announced it will create a Financial Policy Committee (FPC) with authority to make key financial stability policy decisions, including setting prudential requirements for RBNZ-regulated financial institutions and deciding on macroprudential tools such as Debt-to-Income and Loan-to-Value ratios for lending. The FPC will comprise the RBNZ Board Chair, the Governor, three other RBNZ Board members, and up to two external members who are not RBNZ Board members or employees. External members are expected to be recognised experts relevant to the FPC’s work, and the committee’s decisions will remain subject to oversight by the full RBNZ Board. The decision followed engagement with the Treasury and the Minister of Finance and aligns with recommendations from the Finance and Expenditure Committee’s Inquiry into Banking Competition. The RBNZ will shortly open applications for the two external FPC roles, and the committee is planned to be operational from early 2026.
Reserve Bank of New Zealand 2025-10-07
Reserve Bank of New Zealand establishes a Financial Policy Committee with decision-making powers on prudential requirements and macroprudential policy
The Reserve Bank of New Zealand will establish a Financial Policy Committee to make key financial stability policy decisions, including setting prudential requirements and macroprudential tools. The committee will include the RBNZ Board Chair, the Governor, three other board members, and up to two external experts, with operations expected to begin in early 2026.