Geoff Bascand: Safer banks for greater wellbeing

Speech by Mr Geoff Bascand, Deputy Governor and Head of Financial Stability of the Reserve Bank of New Zealand, to the Institute for Governance and Policy Studies, Victoria University, Wellington, 26 February 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Good afternoon,

It is a pleasure to be able to speak about the Reserve Bank's recent proposals to increase minimum capital requirements for banks to such a diverse audience at Victoria University that includes academics, students, government officials, bankers, and members of the public. While perhaps not obvious on the surface, these proposals, if implemented - in whole or in part - are likely to have impacts on all New Zealanders.

The Reserve Bank of New Zealand has been tasked by Parliament with promoting the maintenance of a sound and efficient financial system and exercising its powers to avoid significant damage to the financial system that could result from the failure of a registered bank. These responsibilities, among others, such as those related to monetary policy, are set out in the Reserve Bank of New Zealand Act (1989). It is therefore our job at the Reserve Bank to carry out these legislated responsibilities to the best of our abilities each and every day, for the benefit of improving the wellbeing of all New Zealanders.