The Reserve Bank has communicated the framework through a range of speeches, consultation documents and reports (see for example Spencer (2012), RBNZ (2013a), RBNZ (2013b)). A Memorandum of Understanding has been signed between the Reserve Bank and the Minister of Finance which sets out the key objectives, instruments and responsibilities under the new framework.
The proposed solution would be based on the SEPA credit transfer instant (SCT Inst) scheme, which is in our view the correct approach as it is future-oriented. And it could capitalise from day one on existing powerful and sophisticated infrastructures, such as the Eurosystem’s TIPS.