positive outcomes for the public, the reserve bank, banks and nbdts, and other stakeholders. with the possible exception of those parts of the act that contain specific prudential obligations such as those relating to governance and risk management. bis central bankers ’ speeches we anticipate that the project will take about 12 months, and involve several stages as set out in the indicative timetable below : indicative timetable stage 1 initial scoping industry workshop / discussions with industry bodies / establishment of late july 2014 – early august expert panel stage 2 formulation of draft proposals rbnz and expert panel analyse bank and nbdt prudential requirements august 2014 – february 2015 industry workshop / discussions with industry bodies october 2014 industry workshop / discussions with industry bodies february 2015 stage 3 public consultation and conclusion discussion document prepared march 2015 – april 2015 discussion document out for comment may - june 2015 industry workshop / discussion with industry bodies may 2015 analysis of submissions and formulation of draft proposals july 2015 – august 2015 industry workshop / discussions with industry bodies late august 2015 conclusions finalised, summary of submissions and report on conclusions published september 2015 the first stage will scope ideas that should be considered as part of the stocktake. as part of this process, we will shortly be holding a workshop with industry participants. the second stage will be the detailed formulation of draft proposals. this will last from august through to march next year. as part of this stage of the project, we are proposing to hold two further workshops with industry around october and february. we will also be assembling a small panel of financial regulation experts ( from outside the banks themselves ) to help formulate draft proposals. the third stage of the project will involve a public consultation on the proposals. it will seek input from all stakeholders, after which specific changes will be agreed upon. we expect to hold workshops with industry during this stage. ahead of the workshops, one thing i would like industry to think carefully about is how they assess regulatory costs. different banks and people within banks give us different perspectives. for some the impact on directors work programmes is the main issue ; for others it is the cost of capital ; for others it is the resources tied up in consulting on and implementing regulatory change. keeping in mind that the fundamental building blocks of conservative capital, liquidity, risk management and governance are taken as given, we would be interested in industry views on what one or two big things would really increase the efficiency and effectiveness of the regulatory regime. conclusion to sum up, the reserve bank is

, or the matters that were considered as part of the review of the prudential regime for nbdts that we undertook last year, such as the role of trustees in nbdt supervision. the key planks of the prudential framework will not be revisited, including the need for banks and non - banks to : hold sufficient capital ; maintain sufficient liquidity ; implement robust risk management systems and policies ; and have strong governance regimes. a full list of the key planks is included in the terms of reference for the project that were published on the reserve bank ’ s website this afternoon. as noted earlier, the stocktake will also exclude the insurance regime, although a separate review of the insurance solvency standards is currently underway and will consider many of the same themes around efficiency, clarity and consistency. the broader insurance regime is too young to include in the review. the process for developing prudential regulations the second part of the stocktake will review the processes we use for developing prudential regulations. this will extend to how we identify potential threats to financial stability, how we assess actual versus intended effects of policies, and our approach to communications. i know that many of you will have views on these matters. consultation periods are another matter that we will be looking at closely. over the last three years we have carried out approximately 25 consultations relating to the banking sector, with the average consultation period being four to six weeks ( although the shortest consultation period was three weeks and the longest six months ). we want our general approach to the length and nature of industry consultation to be consistent and transparent, although there may still be occasional instances where the need to move quickly may force us to shorten the timeline. co - ordination of policies with other government departments and agencies with an interest in the banking or nbdt sectors is clearly important. many of you here will be aware that the reserve bank is a member of the council of financial regulators ( along with treasury, mbie and the fma ) that meets quarterly to discuss work programs and emerging issues. the council has recently established a subcommittee, called the banking forum, which is intended to help ensure that government agencies see the big picture of regulatory initiatives affecting the banking sector at any given time. the exchange of information at the forum will help agencies to sequence regulatory reforms and consultations so that pressures from bunching are avoided. process for carrying out the stocktake we are enthusiastic about the stocktake project, and believe it can lead to