Figure 3 depicts a stylised picture of the RBNZ balance sheet. While central bank balance sheets and financial performance can be very volatile, in constructing our balance sheet, we have taken strategic decisions that impose some limits on the potential volatility in reported financial performance.
The new regulatory framework for financial benchmarks that the government is in the process of introducing should provide market participants with more certainty. Treasury recently completed a consultation on draft legislation that sets out how financial benchmarks will be regulated, and the bill has just been introduced into Parliament.