To this end, Eurozone countries need to establish a backstopping framework to ensure financial stability, and devote sufficient public resources to the recapitalization of banks and to ringfencing them from contagion. In addition, an orderly withdrawal of the current excess liquidity should be pre-planned by major central banks. Third, trade and financial protectionism must be decisively rejected by all.
The Reserve Bank of New Zealand Act 2021 has now passed into law and will come into force in July 2022. The Act will modernise how we operate and are governed, with far reaching implications for our operating model. We have also just released for consultation the draft legislation for the proposed Deposit Takers Act.