4  BIS central bankers’ speeches  The Reserve Bank of New Zealand has long had a mandate to use its (micro-) prudential policies to promote a sound and efficient financial system. We do not have a mandate to protect the soundness of individual institutions.
The macro-prudential policy framework established in 2013 also focuses on promoting a sound and efficient financial system using a set of instruments that may be varied through the financial cycle. A Memorandum of Understanding on macro-prudential policy was signed with the Minister of Finance in 2013 that sets out the objectives, instruments and responsibilities for macro-prudential policy (Rogers (2013)).