the payment sector to deliver this rtgs renewal programme is vital. to that end, the bank has established an extensive industry engagement approach to gain views on the scope and approach of the programme and i encourage you all to engage with it. the blueprint for the new rtgs service was published in may of last year and important milestones have been, and continue to be, delivered along the way. at the end of last year, the bank moved to a direct the expectations around service providers to recognised payment systems and the bank ’ s approach to their supervision are set out in annex 1 of the bank ’ s annual report. in line with the recognition criteria laid out in the banking act 2009. all speeches are available online at www. bankofengland. co. uk / speeches delivery model of the uk ’ s high value payment system. this was to enable a single entity to manage risks right across the system, increasing resilience and positioning the uk at the leading edge of global best practice in terms of technology, governance and risk management for payment systems. and from a regulatory perspective, the bank ’ s fmi directorate continues to supervise the hvps to the same standards as other systemically important payment systems. since the transition, the bank has introduced new mechanisms to maintain openness, accountability and challenge in the operation of the hvps. as part of the wider renewal programme, the bank has also broadened rtgs settlement account eligibility to non - bank payment service providers, subject to appropriate safeguards. non - bank payment service providers are now eligible to apply for direct access to payment systems, with transferwise and ipagoo becoming the first non - banks to join fps and bacs, respectively. here, more diverse payment arrangements with fewer single points of failure, and increased settlement grounded in central bank money, all contribute to enhanced financial stability. and we cannot ignore the game changer that wider access represents for the promotion of innovation and competition in the payment market. taken together, these examples illustrate the bank ’ s work to stay in touch with the evolving payments sector and to facilitate innovation, wherever possible, in a thoughtful and proactive way. conclusion to conclude, we in payments are working through a period of extensive change, on a journey to reinforce the uk as world leading in delivering best in class payments. it is important after key milestones have been delivered to take the time to reflect on how far we ’ ve come, but it is equally, if not more

the legislation says, i probably never was. i always worked with others to make the final decision. this is now formalised and i value the insights that all members of the mpc bring to their important role. that was phase 1 of the review. phase 2 is looking at the reserve bank ’ s financial stability function. the process started last year and will run through until the middle of next year, when legislation is due to be introduced to the house. it will continue beyond that, as there will be more detail to work out and implementation to be planned. after the first round of consultation, the government has made a series of in - principle decisions. we will continue to be a “ full service ” central bank the government has decided to keep responsibility for prudential regulation with the reserve bank. this makes sense given new zealand ’ s size. however, this regulatory model is not just about being cost - effective. in our story of the reserve bank as the tane mahuta of new zealand ’ s financial system, our money and foreign reserves are the sap, and our payment and settlement systems allow money to flow round the system, and support our regulated financial institutions – our grafted branches. keeping prudential regulation and supervision in the same institution as monetary policy, currency issuance, our payment and settlements systems and our markets functions, means we maximise the synergies between the different areas. as a full service central bank we can leverage our different tools and market functions and adapt our response as circumstances dictate. we are reviewing the production and movement of our money through the ‘ future of cash ’ project6 – te moni anamata – to make sure that new zealanders, the financial system and the reserve bank are ready and resilient to changing uses and demands for cash. we see a ‘ less cash ’ not ‘ cashless ’ society evolving rapidly. why not cashless? there are many reasons, in particular financial inclusion and business continuity, that cash plays an important role in promoting. new rbnz monetary policy committee remit reiterates focus on price stability and employment what's the future for cash in new zealand? ref # 8108464 v6. 6 we are also renewing our payment and settlements systems to enhance their reliability and security and better meet our customers ’ needs. banking the banks is a 24 / 7 task globally, and we must ensure the highest of operational standards. we are already increasing our capability to deliver effective pr