This based on a survey with banks, insurers, and NBDTs
The latest Reserve Bank of New Zealand Relationship Charter survey has revealed significant improvements among insurer stakeholders in their ratings of their relationship with RBNZ.
Nine in 10 of the bank participants rated the overall relationship “good” or “very good” – a result not much different to previous years: 93% in 2022 and 91% in 2021. Insurer participants’ ratings of their overall relationship with the central bank, meanwhile, saw a significant increase, from 72% in 2022 to 92% this year.
Launched in 2018, the charter aimed to provide a shared understanding of how RBNZ and firms should work together and help the central bank achieve its goal of building the best possible “regulator-regulated” relationships, said Scott McKinnon, director of prudential supervision.
RBNZ surveys banks and insurers every year to see how it is performing against the charter, with non-bank deposit takers (NBDTs) surveyed for the first time this year.
The majority of NBDTs, at 78%, rated their overall relationship with RBNZ strongly – a result that pleased the central bank, given that it does not directly supervise this sector and with the role being undertaken by corporate trustees.
“We are continuing to evolve our supervisory approach based on feedback received from our regulated entities and I’m proud of the progress that we’ve achieved,” McKinnon said.
“The increase in the ratings from our regulated insurers since last year is particularly encouraging. I also acknowledge that there is always room for further improvement. We will continue to assess the results and look for ways in which we can develop our regulated relationships even more.”
When asked about RBNZ’s prudential policy consultation process, the three sectors combined gave an overall rating of 76% “good” or “very good.”
Findings showed that RBNZ performed well over the past 12 months in the following aspects: having regular, open, and honest communication and engagement, managing time frames and agendas, and conducting helpful and engaging RBNZ events and meetings.
RBNZ said key suggestions on what it could do differently to improve the relationship included more proactive and personal contact from RBNZ, and flexibility on regulatory projects.
Read the central bank’s "Our relationship charter with regulated entities" document here.
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