RBNZ releases finalised outsourcing policy for banks

Reserve Bank of New Zealand, 18 January 2006

The Reserve Bank of New Zealand has published its finalised policy setting out its requirements for large banks in relation to outsourcing arrangements. This follows a draft policy that was issued in October 2005.

According to Reserve Bank Deputy Governor Adrian Orr, outsourcing is allowed as long as it doesn't undermine a bank's ability to continue to provide core liquidity, payment and transaction services in good times and under stress. Mr Orr has stated that the policy is focussed at ensuring the boards of large New Zealand banks maintain control of outsourced functions and requires them to have meaningful control and oversight over the bank's chief executive and its staff.

For a copy of the policy, click here.

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