11 December 2023

Statement by the Trans-Tasman Council on Banking Supervision – December 2023

The Trans-Tasman Council on Banking Supervision (TTBC) met in Wellington, New Zealand on 6 December 2023 to discuss matters related to Trans-Tasman banking supervision and regulation, insurance and climate change, the future of money and other topics of mutual interest in the financial sector.

TTBC members provided updates on recent policy announcements and significant work to be undertaken in the coming year. The meeting included a thematic discussion on economic conditions in New Zealand and Australia, noting that while economic activity has been resilient there are mutual challenges faced by the economies, including the persistence of inflation.

The New Zealand Treasury (NZT) led a discussion on insurance and climate change, including how these issues impact on the banking sector. TTBC agencies noted changes in insurance markets due to the increasing frequency and severity of natural disasters. They agreed to continue discussions on insurance in 2024.

The Reserve Banks of Australia and New Zealand (RBA and RBNZ respectively) shared information about their work programmes on the Future of Money and Payments. The TTBC noted the regular bilateral engagement on these work programmes and alignment in the broad areas of focus and issues being explored.

Throughout the year TTBC agencies have discussed lessons that could be learnt from the overseas banking failures early in 2023. At the December meeting the Australian Prudential Regulation Authority (APRA) and the RBNZ provided an update on progress made to strengthen crisis preparedness and management in Australia and New Zealand.

Agencies provided updates on other key workstreams including crypto market regulation (Australian Treasury), developments in cyber resilience work (APRA and RBNZ) and managing disclosure across multiple jurisdictions (Australian Securities and Investments Commission (ASIC) and the NZ Financial Markets Authority (FMA)).

The TTBC agreed to its work plan for 2024, which includes continued information sharing on key issues, such as economic conditions, financial stability, and climate change risks. TTBC members will continue to collaborate on cyber resilience and insurance affordability and availability. This work program will complement the ongoing bilateral engagements between TTBC member agencies and enhance crisis preparedness. In 2024 TTBC agencies have also agreed to undertake a review of the TTBC Memorandum of Cooperation to ensure it remains fit for purpose.

The New Zealand Treasury chaired the Council in 2023 and will be handing over to the Australian Treasury to assume the chair of the Council for 2024.

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 are available here.