10 June 2005 Media Statement
RBNZ’s prudential role not under threat - Cullen
Finance Minister Michael Cullen said today that the Reserve Bank’s prudential function was not under threat in the
Trans-Tasman review of banking regulation.
Dr Cullen was responding to a report in the New Zealand Herald that the bank might be stripped of its banking
supervisory role.
“In Australia the two central bank roles have been separated with the Australian Reserve Bank responsible for monetary
policy and the Australian Prudential Regulation Authority responsible for regulating the financial sector.
“While a similar split is obviously an option for New Zealand, that has never been my preference. There are strong
arguments for retaining the prudential function within the Reserve Bank which has accumulated significant experience and
intellectual capacity in this area,” Dr Cullen said.
ENDS