BIS central bankers’ speeches  7  management) and its customers would be free to participate in the payments system from the re-opening, thus minimising any systemic impact of the failure. The Reserve Bank has been developing the OBR policy over a number of years; the GFC experience provided the final prompt to make it operational.
The policy can be seen as a complement rather than a substitute for the various “recovery plan” tools such as living wills and loss-absorbing debt instruments. OBR is also fully consistent with the Reserve Bank’s local incorporation and outsourcing policies that were introduced in the early 2000s to help protect New Zealand’s largely foreign owned financial system from shocks to parent institutions.