Submission-to-Finance-and-Expenditure-Select-Committee-v

One option for restoring the primacy of net benefit would be to include a limiting phrase in the objective statement such as “to the degree that the expected benefits to the community exceed the costs”. [...] Under the FPR, the Minister of Finance can specify matters for the RBNZ Board to “have regard to” when setting financial stability policies, including prudential requirements like capital ratios.19 5.5 The contents of the FPR may include matters that the Minister of Finance considers desirable for the RBNZ Board to have regard to in pursuing financial stability objectives, furthering prudential le. [...] 5.8 Recommendation (3): Subject to the outcome of the independent review proposed in section 4 above, the Minister of Finance should exercise her FPR powers to direct the RBNZ to implement the results of the independent review. [...] 6.5 Our recommendations were built on the research of the New Zealand Productivity Commission in its 2014 report, Regulatory Institutions and Practices, a review of the academic literature relating to the governance and performance of regulatory agencies and quantitative research on the performance of New Zealand’s major regulators. [...] It is the approach taken with the RBNZ’s peer regulator, the FMA, with the FMA’s CEO not being a member of the FMA board 6.17 This structure would: • Enhance the board’s capacity to objectively scrutinise the RBNZ’s performance.