[3] The governor of the Reserve Bank, currently Adrian Orr, is responsible for New Zealand's currency and operating monetary policy.

[19][3] The Reserve Bank's primary function, as defined by the RBNZ Act 2021 is to provide "stability in the general level of prices" and "maximum sustainable employment".

[20] The Reserve Bank is responsible for independent management of monetary policy to maintain price stability.

The degree of price stability is determined through a Policy Target Agreement with the Minister of Finance.

Furthermore, the bank will accept deposits from financial institutions with interest usually at the official cash rate.

[23] The RBNZ has been evaluating the pros and cons of issuing a central bank digital currency since 2018.

This digital currency would coexist with physical cash while offering privacy, security, and trust for users.

[30] policy mandating the minimum amount that a commercial bank must hold in liquid assets.

Additionally, reporting requirements are imposed under section 93 of the Banking (Prudential Supervision) Act 1989.

These ratings, provided by independent agencies, assess a bank's financial stability and likelihood of repaying its debts.

It ensures that outsourcing arrangements do not compromise a bank's ability to be effectively administered under statutory management and operate for the purposes of continuing to provide and circulate liquidity to the financial system and the wider economy.

They must also address the impact of service or function provider failures on the bank's ability to carry on its business.

Connected exposures occur when multiple counterparties are linked through control relationships or economic interdependence.

For example, if one company controls another, or if the financial health of one entity directly affects another, they are considered connected.

The Basel Committee on Banking Supervision (BCBS) has set guidelines to limit large exposures.

This helps in maintaining the stability of the financial system by reducing the risk of cascading failures.

while a long-term solution to the bank's failure is found, customers can promptly access their accounts to make and receive payments.

In the absence of OBR, the only ways to deal with a bank failure are liquidation, government bailout, or acquisition by a competitor.

[35] The goal of Macroprudential regulation is to reduce the likelihood of a financial crisis by limiting excessive lending during upturns and making banks and households more resilient during downturns.

[36] The RBNZ is a member of the council, which promotes the coordination and harmonisation of trans-Tasman bank regulation, where appropriate.

[41] The Governor is accountable for the Bank’s performance in maintaining price stability, promoting a sound and efficient financial system, and meeting the currency needs of the public but retains statutory independence as to how these key outcomes are achieved.