‘Financial stability’ has the advantage of clarity, providing a sharp focus for the Reserve Bank, but potentially downplays the importance of efficiency and dynamism that are equally relevant to our over-arching purpose: contributing to a sustainable and productive economy and the prosperity and wellbeing of New Zealanders.
This includes further liberalizing FX rules to reduce the cost of doing business and to improve data capture for FX transactions. Overall, our commitment to lowering friction costs in the banking sector will foster more efficient financial intermediation, which will be further enhanced by the availability of alternatives offered by fintech and digital innovation.