Statement by the Trans-Tasman Council on Banking Supervision – November 2019
To support transparency, the Trans-Tasman Council on Banking Supervision (TTBC) has agreed to publish a statement after each of its regular meetings. At its November meeting, the TTBC discussed matters related to trans-Tasman bank supervision and regulation, as well as other topics of mutual interest in the financial sector.
The general tone across all of the trans-Tasman work is a commitment to enhanced international regulatory and supervisory coordination, and an increased focus on institutional governance, executive accountability, and customer outcomes.
The Reserve Bank of New Zealand (RBNZ) updated the TTBC on its Capital Review, the final decisions for which are expected in December, and the Australian Prudential Regulation Authority (APRA) updated on its review of the Australian capital framework. The two regulators undertake regular and thorough information sharing, with the interconnectedness between the parent and subsidiary banks well understood. APRA also gave an informative briefing on its assessment of the increased resilience of the trans-Tasman banks.
Australian and New Zealand agencies covered other topics of shared interest, such as New Zealand's Review of the Reserve Bank of New Zealand Act, a proposed framework for conducting trans-Tasman supervisory colleges between relevant financial sector regulators, and implementation of the recommendation of the Australian Financial Services Royal Commission to extend the Banking Executive Accountability Regime (BEAR) to more financial entities.
The TTBC also discussed trans-Tasman crisis preparedness, reflecting on the collaborative work between agencies this year. Relevant agencies will work closely together to take forward institution-specific resolution planning. The TTBC also discussed a recent trans-Tasman crisis communications exercise and agreed steps to improve further crisis response procedures.
The TTBC agreed its work for 2020, aiming to strengthen cooperation and coordination on crisis management and crisis preparedness. TTBC agencies have committed to discuss a broader range of financial matters, such as insurance markets and conduct of financial institutions – topics of great interest on both sides of the Tasman.
The meeting concluded with the Australian Treasury assuming the chair of the TTBC for 2020.
New Zealand Treasury (Chair)
Dr Caralee McLiesh, Bryan Chapple
Dr Steven Kennedy, Diane Brown
Reserve Bank of New Zealand
Adrian Orr, Geoff Bascand, Toby Fiennes
Reserve Bank of Australia
Michele Bullock, Darren Flood
Financial Markets Authority
Rob Everett, Liam Mason
Australian Prudential Regulation Authority
Wayne Byres, John Lonsdale, Chris Gower
Australian Securities and Investments Commission
James Shipton, John Price, Sean Hughes
About the Trans-Tasman Council on Banking Supervision
The Trans-Tasman Council on Banking Supervision (TTBC) is a working group that aims to promote the coordination of trans-Tasman bank regulation and supervision. It is jointly chaired by the Secretaries of the Australian and New Zealand Treasuries. The TTBC’s membership also includes senior officials from the Reserve Bank of Australia (RBA), the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC), the Reserve Bank of New Zealand (RBNZ), and the New Zealand Financial Markets Authority (FMA).
The TTBC's terms of reference is available here.