s bilateral and multilateral arrangements. we already have close relations with our neighbours in australia but we are also helping to build capacity and capability in central banks throughout the south pacific and east asia. it is also a forward looking view. we are developing a climate change strategy which recognises the role of the financial system in contributing to global action and dealing with the risks that climate change might pose. this means looking at ourselves, how we are going to change and how the reserve bank will work differently. our statement of intent and the longer term we set out our plans and commitments in our latest statement of intent3, which covers the years 2019 - 22. we published this on the same day the government set out the next stage of consultation on the operational part of our financial and prudential policy. and, since then we have published our own vision4 that complements the government ’ s view. we have taken a different approach with the statement of intent this year. it has always been an important communications tool, but we are trying harder to communicate with our stakeholders, not just meet the statutory requirements. by the time we get to the end of the statement of intent period, we will be operating in a very different environment. we are facing a backdrop of significant change – globally, culturally as an institution, and in the government ’ s and public ’ s expectations of us. we are continuing to build our capability to respond to, influence and lead our rapidly changing environment. reserve bank statement of intent 2019 - 22 our vision, the future of the reserve bank of new zealand ref # 8108464 v6. 6 i have previously talked about our vision as being an island we are journeying towards. our vision is to be a great team, and the best central bank. this involves our activities, our people and our stakeholders. with the government ’ s latest consultation, the destination in terms of our activities is now looking a lot clearer. review of the reserve bank act i have already mentioned the review of the reserve bank act which is currently under way. phase 1 of the review focused on monetary policy. the outcome was a new objective to support maximum sustainable employment as well as achieving price stability. there is also a new monetary policy committee5, which is now in place and delivering. the committee has made two decisions on the official cash rate so far. there has been some talk in the context of these new arrangements that i am no longer the ‘ single decision maker. ’ in reality, whatever

in the banking system, but increasingly reside in different jurisdictions. the international framework for supervision of multi - national banks the internationally - agreed framework for the supervision of multinational banks, as devised by the basel committee on banking supervision, is known as the basel concordat ( not to be confused with the basel accord on capital standards for banks ). the concordat assigns clear, and deliberately overlapping, roles to the supervisors of multinational banks in those banks ’ “ home ” and “ host ” countries. the home country supervisor is responsible for consolidated supervision of the global bank. it sets standards to be met on a group consolidated basis, for example, that group capital is sufficient to support the global business. ( some home country supervisors additionally set standards to be met by the bank in its home country alone - so - called “ solo ” standards. ) host supervisors, that is, the authorities in the other countries where the bank operates, are charged with supervising the bank in their individual jurisdictions. this framework recognises the reciprocal and over - lapping, though not identical, interests of the respective authorities, and the importance of sharing information. as mainly a host supervisor, the prime role of the rbnz is to promote sound banking by the overseas - owned banks operating in “ our patch ”. we do this mainly for our own purposes, in recognition of the vital role of our banking system to the new zealand economy, but there is also a significant element of contributing to the effective supervision of the multinational banking groups of which the overseas - owned new zealand banks are a part. in return, we have a close, reciprocal interest in the parents of the overseas - owned banks in new zealand, and in the supervision of those banks by the relevant overseas authorities. with new zealand ’ s banks almost entirely foreign - owned, there is at least as large a probability that shocks to the new zealand banking system will originate from abroad as from within new zealand. rbnz supervision for promoting banking soundness the reserve bank of new zealand, as the new zealand banking supervisor, conducts its supervision of new zealand banks that are overseas - owned within this internationally - agreed framework. ( in new zealand, unlike in australia, the central bank is also the bank supervisor. ) the rbnz ’ s responsibility to supervise banks in new zealand is prescribed in the reserve bank of new zealand act. this act requires us to use the powers it gives to the bank to promote the soundness and efficiency of the new zealand financial system, and to avoid significant damage to