We are working with banks and other stakeholders on a new mortgage bond standard, which will provide banks with an additional funding source, as well as provide banks and investors with a new tradeable instrument. It will also create a larger pool of standardised and transparent securities that the Reserve Bank can lend against as lender of last resort.
Phase 2 of the review of the Reserve Bank of New Zealand Act is looking in more detail at our macroprudential and crisis management tools. The table below illustrates how our prudential banking tools work together to deliver financial stability. Each of our policies contributes to financial stability by addressing a separate risk, with its own transmission channel.