New Financial Policy Committee Established by Reserve Bank of New Zealand

The Reserve Bank of New Zealand (RBNZ) has established a new Financial Policy Committee (FPC) tasked with making critical decisions regarding financial stability. This committee will set prudential requirements for financial institutions and determine macro-prudential policies, including debt-to-income and loan-to-value ratios for lending. The FPC's formation follows recommendations from a parliamentary banking inquiry aimed at enhancing financial oversight.

RBNZ Financial Policy Committee members to include ex-APRA & Afterpay managerReserve Bank appointments to Financial Policy Committee – Reserve Bank of New Zealand – Te Putea Matua

Heidi Richards, a former consultant for the Australian Prudential Regulation Authority (APRA), and Prasanna Gai, a professor at Auckland University, have been appointed as external members of the FPC. Richards brings extensive experience in regulatory compliance and risk management, having previously led policy functions at APRA and served in senior roles at Afterpay. Gai, who is also a member of the RBNZ's Monetary Policy Committee, specializes in macroeconomic policy and has published extensively on financial stability.

Reserve Bank appointments to Financial Policy Committee – Reserve Bank of New Zealand – Te Putea Matua

The FPC will be chaired by Byron Pepper, a former investment banker at Goldman Sachs and current RBNZ director. Other members include RBNZ Governor Anna Breman, former deputy governor Grant Spencer, and Philip Vermeulen, a professor of economics at the University of Canterbury. RBNZ Chairman Rodger Finlay will also participate in the committee.

RBNZ Financial Policy Committee members to include ex-APRA & Afterpay manager

The FPC operates under a charter that outlines its operational framework and decision-making processes. Decisions will be made by consensus whenever possible, with provisions for majority voting if consensus cannot be reached. The charter allows for the recording of minority views in meeting minutes at the request of dissenting members. The FPC is expected to meet at least five times annually, with its inaugural meeting scheduled for late February 2026.

RBNZ Financial Policy Committee members to include ex-APRA & Afterpay manager

The establishment of the FPC is seen as a significant step towards bolstering New Zealand's financial stability. According to Rodger Finlay, the wealth of experience among FPC members will enhance the RBNZ's financial policymaking capabilities. The committee's work will be crucial in navigating the complexities of financial regulation and ensuring the resilience of the financial system.

Reserve Bank appointments to Financial Policy Committee – Reserve Bank of New Zealand – Te Putea Matua

The FPC will be accountable to the RBNZ board, which will review its statutory delegations annually and assess its charter every two years. The appointments of Richards and Gai are set for specific terms, with Richards serving from January 1, 2026, to December 31, 2029, and Gai from January 1, 2026, to December 31, 2028. The committee's effectiveness will be closely monitored as it embarks on its mission to safeguard New Zealand's financial landscape.

RBNZ Financial Policy Committee members to include ex-APRA & Afterpay manager

“I am pleased with the appointments to the FPC that we are announcing today, and welcome Ms Richards and Professor Gai to the FPC,” — Rodger Finlay, RBNZ Chairman

Reserve Bank appointments to Financial Policy Committee – Reserve Bank of New Zealand – Te Putea Matua

“The FPC’s work will be crucial to promoting New Zealand’s financial stability and the wealth of experience of all the FPC members will enhance and bring focus to the Reserve Bank’s financial policymaking," Finlay says.” — Rodger Finlay, RBNZ Chairman

RBNZ Financial Policy Committee members to include ex-APRA & Afterpay manager