Terms of Reference for the Trans-Tasman Council on Banking Supervision

The Trans-Tasman Council on Banking Supervision (the TTBC) supports the development of a single economic market in banking services. The TTBC will promote a joint approach to trans-Tasman banking supervision through cooperation and coordination to deliver a seamless regulatory environment.

Bank supervision, including crisis preparedness and vulnerability mitigation, remain a focus for the TTBC in recognition of the systemic importance of the banking system. However, the mandate for the TTBC also covers potential issues relating to financial stability, efficiency, and integration throughout the wider financial sector.

In particular, the TTBC will:

• enhance cooperation on the supervision of trans-Tasman financial institutions and information sharing between respective supervisors;
• regularly review financial system vulnerabilities and promote crisis response preparedness relating to events that involve trans-Tasman financial institutions; and

• guide the development of policy advice to both governments relating to the supervision of trans-Tasman financial institutions, underpinned by the principles of policy harmonisation, mutual recognition and trans-Tasman coordination.

The TTBC will be chaired jointly by the Secretaries to the Treasuries of Australia and New Zealand, and will also comprise senior officials from the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC), the Financial Markets Authority (FMA), the Reserve Bank of Australia (RBA) and the Reserve Bank of New Zealand (RBNZ).

The TTBC may establish working committees drawn from the respective agencies to help it in reaching views on particular matters, and may delegate aspects of the work to these committees where appropriate. Where any of the issues considered by the working committees have a direct interest for any other agencies, these parties will be invited to participate.

The TTBC will meet with industry participants as necessary and will seek to facilitate the integration of the two markets to the greatest extent possible, while maintaining the safety, stability and efficiency of both financial systems, and protection of sovereign interests as determined by the respective governments.

The existence of the TTBC does not in any way derogate from the existing statutory rights and responsibilities of the respective authorities.

The TTBC will be responsible to the Australian Treasurer and the New Zealand Minister of Finance and report to them if necessary prior to their meetings.

October 2024