Investment banking veteran to continue leading key financial stability committee in expanded board role.
The Reserve Bank has appointed Byron Pepper (pictured) as deputy chair of its board, effective 20 July.
The appointment, made by the governor-general on the recommendation of the minister of Finance, runs for a four-year term aligned with Pepper's existing board term, which concludes on 30 June 2030.
Pepper brings more than 25 years of investment banking experience to the role, having advised corporate and government clients across the financial services sector in New Zealand, Australia and internationally. He holds a Bachelor of Law and a Bachelor of Management Studies (Finance), both from the University of Waikato.
Pepper is not new to the RBNZ board, having served as a director since July 2022. During that time, he chaired the Financial Policy Committee since its establishment and previously led the Financial Stability Oversight Committee — experience that positioned him for the elevated role.
Recognition for governance leadership
RBNZ Chair Rodger Finlay linked the promotion directly to Pepper's track record on the board, particularly his role in the 2025 review of bank capital settings.
"The appointment of Byron to deputy chair recognises his sustained contribution to RBNZ's governance, including his leadership in the establishment of the FPC, and his oversight of the review of bank capital during 2025," Finlay said. "I'm pleased to welcome him to the role and look forward to the continued value he will bring."
That review, which Pepper helped oversee, concluded in December 2025 with a decision to align standardised risk weights for housing loans with loan-to-value ratios below 70% with those used by Australia's prudential regulator, with small and mid-sized deposit takers set for a proportionately larger reduction than the four large banks. The changes, phasing in from 2026, are expected to lower funding costs and support credit access.
What continues unchanged
Despite the new title, Pepper's day-to-day responsibilities within the RBNZ's regulatory structure remain largely the same: he will continue chairing the Financial Policy Committee, the body responsible for macroprudential policy settings that directly affect bank lending conditions, including capital requirements and loan-to-value ratio restrictions relevant to mortgage brokers and their clients.
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