Reserve Bank of New Zealand (RBNZ) governor Christian Hawkesby (pictured) addressed attendees at the Financial Services Council (FSC) Annual Conference in Auckland, focusing on institutional trust, regulatory developments, and the ongoing transformation of the financial sector.
Hawkesby, participating in the FSC event for the fourth consecutive year and for the first time as interim governor, acknowledged the recent leadership transitions at the RBNZ.
The central bank has experienced significant changes, including the departure of its previous governor earlier in the year and a change in board leadership in August.
Hawkesby noted that these events have placed the RBNZ under increased public scrutiny.
“Trust and confidence in our economic institutions is what underpins our financial system and supports economic prosperity for New Zealanders,” he said.
He emphasised that the RBNZ remains committed to its mandate of maintaining low and stable inflation and ensuring the resilience of the financial system, which he described as fundamental to supporting both the sector and its clients.
Hawkesby discussed the evolution of the RBNZ’s governance model over the past seven years.
The central bank has shifted from a single decision-maker structure to a system where a Monetary Policy Committee (MPC) and a dedicated board share responsibilities.
The governor now chairs the MPC and is a member of the board, which oversees prudential policy and other key functions.
This structure, Hawkesby explained, is designed to provide stability and continuity, particularly during periods of leadership transition.
“This governance structure means that in times like these with turnover in leadership, we have the continuity to push ahead with an ongoing emphasis on delivering our mandate,” Hawkesby said.
Turning to monetary policy, Hawkesby outlined the MPC’s focus on the effects of global trade barriers, particularly since April’s “Liberation Day.”
He noted that while inflation has returned to the target range of 1% to 3%, the economic environment remains influenced by recent supply chain disruptions and global events.
The May Monetary Policy Statement suggested that increased trade barriers have dampened global demand, resulting in less inflationary pressure for New Zealand.
By August, the RBNZ observed a decline in domestic confidence, leading to economic slack and the potential for further reductions in the Official Cash Rate (OCR).
“While our central projection for the OCR is to fall to around 2.50% by the end of the year, that could occur faster or slower depending on how the economic recovery evolves,” Hawkesby said.
Hawkesby highlighted the RBNZ board’s review of capital requirements for deposit-taking institutions, building on previous work and considering recent legislative and international developments.
The central bank has proposed two options for capital settings and is seeking industry feedback, with consultation open until Oct. 3.
He also addressed the ongoing review of the Insurance (Prudential Supervision) Act 2010 (IPSA), with Cabinet recently approving recommendations for legislative amendments.
Hawkesby clarified that the aim is to ensure the regulatory framework is modern and proportionate, rather than to increase regulatory burden.
Hawkesby reported improved engagement with regulated insurers, citing a recent survey in which 97% of respondents rated their relationship with the RBNZ as “good” or “very good,” up from 81% the previous year.
He concluded by reiterating the importance of collaboration and transparency between the regulator and the industry.
“We know that we need to work together with you with transparency and respect to continue to earn your trust and confidence and to support you to Transform for Tomorrow,” Hawkesby said.
The FSC recognised achievements across the financial services industry at its 2025 awards, presented during the annual conference in Auckland.
The FSC Awards, judged by chief executive officer Kirk Hope, acknowledged a range of achievements, including new categories for environmental, social, and governance (ESG) excellence and innovation.
Hope stated that celebrating leadership and progress in the sector is essential to building financial confidence and wellbeing in New Zealand.
“A thriving, robust, and sustainable financial services sector is vital for Aotearoa New Zealand’s future. It is essential we recognise and celebrate the people and organisations who drive the industry forward, helping to grow New Zealanders’ financial confidence and wellbeing,” he said.
Gail Costa, former chief executive officer of Chubb Life Insurance NZ, received the Chair’s Award for Service to the Industry, recognising her long-standing impact on the sector.
“I’ve built my career on my genuine belief of the important role that life insurance plays in making a meaningful difference in people’s lives, and so it’s a real honour to be recognised by my peers in an industry I care so deeply about,” she said.
Good Shepherd New Zealand was presented with the Contribution to Community Award for its Family Violence Economic Harm Service, which supported victims of economic abuse and facilitated the removal of $1.1 million in unjust debt last year.
ANZ was awarded the Excellence in ESG Award for its initiatives to address modern slavery risks within its operations.
Simfuni received the Innovation of the Year Award for its development of a cloud-based insurance platform.
Partners Life was recognised for its efforts in diversity and wellbeing, while Anita Los’e received the Emerging Trailblazer Award for her leadership in group insurance and advocacy for Māori and Pasifika communities.
Alan Langford and John Crossman were jointly honoured with the Workplace Savings Award for their contributions to superannuation governance and industry development.
The Adviser Learning Transformation Team at Southern Cross Health Insurance was named Team of the Year for its onboarding programme, which improved adviser capability and customer outcomes.
