Central banks emerged from being the strongest financial institution acting as the banker to the government and to the banks, and as lender of last resort. This position at the heart of the financial system made central banks the natural institution to also take a public policy role, with responsibility for the stability of the financial system, Ms Beaumont says in a speech delivered to the 39th Annual Conference of the Banking & Financial Services Law Association. In New Zealand the first formal responsibility for prudential regulation and supervision of banks was provided for in the Reserve Bank of New Zealand Amendment Act 1986.

https://www.miragenews.com/rbnz-advances-towards-global-best-practice-with-1076927/

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