Expect more intrusive Reserve Bank: Bascand
The Reserve Bank is likely to become more "intrusive" in policing banks and insurers, according to deputy governor Geoff Bascand.
Thursday, June 27th 2019, 11:57AM
Banks and insurance companies can expect more scrutiny from the central bank as part of a "more intensive supervisory approach", Bascand said in a speech this week.
The deputy governor gave a clear indication that the RBNZ will take firmer line on corporate misconduct and individual accountability, at the Financial Markets Law Conference in Auckland.
"We will be more pro-active in holding directors and managers to account, particularly in areas where we have already identified shortcomings," Bascand said.
It comes after The Reserve Bank censured and disciplined ANZ in May for capital failings. This week it followed up the punishment with two independent reviews into ANZ's conduct.
The Reserve Bank is set to invite the broader public to provide feedback on the quality of bank supervision. The current review of the Reserve Bank is weighing up whether to intensify its approach.
Bascand said he expects the central bank to continue with thematic reviews of the financial system.
"In the near future there will be a thematic review on banks’ liquidity standards and another on the appointed actuary regime in the insurance sector. We will continue to periodically stress test the banking system," he added.
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