Banks and insurers can expect us to be more intrusive in our supervisory approach. This is already underway. We promote financial stability across our monetary and financial system The government has announced a new high level objective for the Reserve Bank – to maintain and enhance the stability of the financial system. ‘Financial stability’ has the advantage of clarity of purpose.
It does not mean we abandon the principle of regulatory efficiency: as a good regulatory steward we consider the cost-benefit of all our policies. It also means we continue to promote a dynamic and efficient financial system.