RBNZ Names Seven Members of New Financial Policy Committee

New Zealand's newly established Financial Policy Committee is scheduled to convene for its inaugural session in February, following the central bank's announcement of its seven-member composition, which features two external appointments.

University of Auckland economics professor Prasanna Gai—a current member of the Monetary Policy Committee—and former Australian Prudential Regulation Authority official Heidi Richards have been named as the external members, the Reserve Bank declared Tuesday from Wellington.

The committee will be led by RBNZ board member Byron Pepper as chair, and its membership includes Governor Anna Breman, Board chair Rodger Finlay, alongside board members Grant Spencer and Philip Vermeulen.

This initiative follows last year's reviews of banking competition in New Zealand, which advocated for enhancements in the RBNZ's financial policy development process. Supported by Finance Minister Nicola Willis, the board established the committee to infuse deeper expertise into policy deliberations. The FPC's mandate will encompass determining prudential standards for institutions under the RBNZ's purview and formulating macro-prudential policies, including settings for debt-to-income and loan-to-value ratios.

"The FPC's responsibilities will be vital for safeguarding New Zealand's financial stability, and the extensive expertise of its members will significantly strengthen and sharpen the focus of the RBNZ's financial policy framework," Finlay stated.

Additionally, the committee will offer counsel to the finance minister on matters of legislative change, regulation, and other supervisory actions, and will have approval authority over the RBNZ's semi-annual Financial Stability Report.

Gai has been appointed for a three-year tenure concluding in December 2028. He previously served on the board of the nation's Financial Markets Authority until his resignation on December 31.