BIS central bankers’ speeches  5  The Reserve Bank’s oversight role In the international context, the Reserve Bank’s regulatory framework in the payments area is at the non-intrusive end of the spectrum. The Bank and FMA have a relatively low level of regulatory authority in this area.
Under the Bank-FMA designation regime 6, FMIs seeking designation must have their rules approved by the Bank and FMA. However, this regime is voluntary and, for FMIs not choosing to be designated, the Bank must rely on suasion and industry engagement to promote its stability and efficiency objectives.