Resilience As A Pathway To Prosperity – A Keynote Speech By RBNZ Deputy Governor Christian Hawkesby

In his keynote address at the annual Financial Services Council Conference, Deputy Governor Christian Hawkesby outlines how financial stability and resilience are critical in supporting New Zealanders’ well-being and prosperity. Mr Hawkesby discusses how the Reserve Bank integrates these broader objectives into its mandate, considering factors such as competition, innovation, and inclusion in its decision-making process.

“Our commitment to financial stability goes beyond preventing crises. It’s about fostering an environment where innovation can flourish, competition thrives, and the system is inclusive and efficient. Our strategic approach ensures that where possible we promote resilience and these crucial factors to support a stable and thriving economy,” Mr Hawkesby says.

In his address, Mr Hawkesby introduces the Financial Stability Frontier, a tool designed to identify beneficial interactions and trade-offs between maintaining financial stability and fostering a competitive, innovative and inclusive financial system. By explaining this framework, Mr Hawkesby sheds light on how policy decisions are made and how they contribute to long-term economic stability and prosperity.

“Navigating the Financial Stability Frontier is about balancing our commitment to resilience with the need for innovation and competition - ideally promoting both at the same time. Our strategic approach ensures that we support a financial system that is both stable and adaptable to the evolving needs of the economy,” Mr Hawkesby says.

Mr Hawkesby also highlights how the Reserve Bank’s approach to stability is reflected in its strategic priorities, which align with other policy areas across the organisation and best international practice. Key themes of the speech include the importance of resilience as a foundation for a productive and sustainable economy, and how the Reserve Bank balances resilience with other enabling factors.

“The Financial Stability Frontier helps us understand the trade-offs between resilience and other critical factors, and importantly where there might be mutually beneficial decisions. This is all about ensuring that our policies support a robust, innovative, and inclusive financial system that benefits all New Zealanders,” Mr Hawkesby says.

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