Phase 2 of the review of the Reserve Bank of New Zealand Act is looking in more detail at our macroprudential and crisis management tools. The table below illustrates how our prudential banking tools work together to deliver financial stability. Each of our policies contributes to financial stability by addressing a separate risk, with its own transmission channel.
Some are more targeted at prevention (limiting the likelihood of a financial crisis) while others are more targeted at management (mitigating the impact of a crisis if it does occur).