Operational principles Public balance The Committee would take into account the financial risks that the tools sheet risk would create for the Reserve Bank and Crown balance sheets, to protect public funds and central bank independence. Operational readiness  Use of the tools would take into account the operational readiness of each tool, to ensure the transmission channels function as expected.
This includes the readiness of the Reserve Bank to implement each tool and the readiness of financial markets and the New Zealand public to respond appropriately to the tools. Source: RBNZ. Table 4 provides short descriptions of the tools themselves. Our assessments are based on our own knowledge of the workings of New Zealand’s financial markets, as well as international experience and academic insight.