Justice Courtney’s judgement in the hearing for CBL’s liquidation noted “a lack of candour in dealing with the company’s auditors and the regulator”4 The Reserve Bank’s Relationship Charter5 seeks – in part – to address these kinds of issues in a practical and positive manner. By establishing how we will interact with an institution, we are laying down a clear marker.
What does this mean in practical terms? The Reserve Bank needs to more often positively verify the information and assurances it receives from regulated institutions. We will be intensifying our “show me, don’t just tell me” style of engagement with the industry.