Adrian Orr and Rob Everett

These are challenging times for everyone as we learn to live in different ways to combat the spread, and limit the human cost of the Covid-19 virus.

Part of behaving responsibly can mean challenging the way things have been done in the past, and adopting new and innovative ways of dealing with what is in front of us. New Zealanders can take comfort in the innovation, commitment and responsibility being shown across the financial sector to address their needs at this uncertain time.

A lot of this has been led by the Council of Financial Regulators (COFR), whose members include the Reserve Bank of New Zealand, The Financial Markets Authority (FMA),

The Commerce Commission, The Ministry of Business Innovation and Employment and The Treasury.

Through collective leadership, COFR has enabled and driven the delivery of Government-led initiatives such as the mortgage deferral scheme, new Business Financing Guarantee scheme and changes to tax requirements.

We’ve reprioritised the regulatory reform landscape so financial service participants can focus on supporting their customers’ needs, knowing there will be time and space to tackle the challenges ahead.

For example, the Reserve Bank has postponed new capital requirements on banks and a review of rules for insurers. We are banking the banks and supporting markets and institutions to function smoothly and effectively.

The FMA has postponed or cancelled monitoring for licensed providers including on-site visits and reduced nonurgent information requests.

This reprioritisation is a balancing act. Collectively COFR agencies are promoting additional risk-taking by financial firms so liquidity generated through Government initiatives flows to households and businesses.

As much as this crisis is challenging, it does present huge opportunities for New Zealand to be global leaders.