Reserve Bank of New Zealand Act 1989

53 Duties of Board

(1)

Subject to this Act, the Board of the Bank shall—

(a)

keep under constant review the performance of the Bank in carrying out—

(i)

its functions under sections 8 and 9 (or under an Order in Council under section 12); and

(ii)

its functions relating to promoting the maintenance of a sound and efficient financial system; and

(iii)

its other functions under this Act or any other enactment:

(b)

keep under constant review the performance of the Governor in discharging the responsibilities of that office:

(c)

keep under constant review the performance of the Deputy Governor in discharging the responsibilities of that office:

(d)

keep under constant review the performance of the MPC, and each member of the MPC, in discharging responsibilities under this Act:

(e)

keep under constant review the use of the Bank’s resources.

(2)

The Board may give advice to the Governor on any matter relating to the performance of the Bank’s functions and the exercise of its powers.

(3)

If the Board is satisfied—

(a)

that the Bank is not adequately carrying out its functions (other than functions performed by the MPC); or

(b)

that the Governor has not adequately discharged the responsibilities of that office; or

(c)

that the Governor has obstructed, hindered, or prevented the Board or the MPC from discharging responsibilities under this Act (for example, by failing to give the Board or the MPC information that is necessary to discharge those responsibilities); or

(d)
[Repealed]

(e)

that the resources of the Bank have not been properly or effectively managed; or

(f)

that the Governor has, while holding office as Governor,—

(i)

held any other office of profit; or

(ii)

engaged in any other occupation for reward; or

(iii)

had an ownership interest in a registered bank or a licensed NBDT as defined in the Non-bank Deposit Takers Act 2013 or a licensed insurer or a relevant operator of an FMI as defined in section 46(4); or

(iv)

had an ownership interest in a bank carrying on business outside New Zealand; or

(g)

that the Governor is unable to carry out the responsibilities of office, or has been guilty of serious neglect of duty, or has been guilty of misconduct,—

the Board shall advise the Minister in writing and may recommend to the Minister that the Governor be removed from office.

(4)

The Board must advise the Minister in writing and may recommend to the Minister that the Deputy Governor be removed from office if the Board is satisfied—

(a)

that the Deputy Governor has not adequately discharged the responsibilities of that office; or

(b)

that 1 or more of the grounds specified in the Deputy Governor’s conditions of appointment under section 44(4) apply; or

(c)

that the Deputy Governor has obstructed, hindered, or prevented the Governor, the MPC, or the Board from discharging responsibilities under this Act; or

(d)

that the Deputy Governor has, while holding office as Deputy Governor,—

(i)

held any other office of profit; or

(ii)

engaged in any other occupation for reward; or

(iii)

had an ownership interest in a registered bank or a licensed NBDT as defined in the Non-bank Deposit Takers Act 2013 or a licensed insurer or a relevant operator of an FMI as defined in section 46(4); or

(iv)

had an ownership interest in a bank carrying on business outside New Zealand; or

(e)

that the Deputy Governor is unable to carry out the responsibilities of office, or has been guilty of serious neglect of duty, or has been guilty of misconduct.

(5)

The Board must advise the Minister in writing, and may recommend that the Governor, Deputy Governor, or any other member of the MPC be removed from  office,  if  the  Board  is  satisfied  of  any  matter  referred  to  in  clause 19(2)(a) to (e) of Schedule 2.

(6)

The Board may act under subsections (3) to (5) with as little formality and technicality, and as much expedition, as is permitted by—

(a)

the principles of natural justice; and

(b)

a proper consideration of the matter.

Section 53(1)(a): replaced, on 10 September 2008, by section 14(1) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Section 53(1)(a)(i): replaced, on 1 April 2019, by section 20(1) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 53(1)(c): replaced, on 1 April 2019, by section 20(2) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 53(1)(d): replaced, on 1 April 2019, by section 20(2) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 53(3)(a): amended, on 1 April 2019, by section 20(3) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 53(3)(c): replaced, on 1 April 2019, by section 20(4) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 53(3)(d): repealed, on 1 April 2019, by section 20(4) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 53(3)(f): amended, on 1 April 2019, by section 20(5) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 53(3)(f)(iii): amended, on 11 May 2021, by section 162 of the Financial Market Infrastructures Act 2021 (2021 No 13).

Section 53(3)(f)(iii): amended, on 1 April 2019, by section 20(6) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 53(3)(f)(iii): amended, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 53(3)(f)(iii): amended, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).

Section 53(3)(f)(iv): amended, on 1 April 2019, by section 20(6) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 53(4): inserted, on 1 April 2019, by section 20(7) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 53(4)(d)(iii): amended, on 11 May 2021, by section 162 of the Financial Market Infrastructures Act 2021 (2021 No 13).

Section 53(5): inserted, on 1 April 2019, by section 20(7) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 53(6): inserted, on 1 April 2019, by section 20(7) of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).