will seek to focus our resources on addressing the biggest risk to, or opportunities for enhancing, financial stability. collaborative and transparent : we will work collaboratively within the reserve bank and with industry. we will work closely with our cofr partners in pursuing shared or interlinked objectives, including those related to climate, financial inclusion, financial innovation, and in understanding our impact on firms, consumers and the financial system. effective prioritisation : we will prioritise on an ongoing basis, recognising trade - offs and targeting our resources to where we can have the biggest impact on the outcomes we are seeking. this includes working through cofr on system wide priorities. continuous improvement : we will seek to monitor and review our performance on a continuous basis and incorporate these lessons into future actions. the relationship charter to deliver our approach to prudential regulation and supervision, our relationships with our regulated entities remains key. our relationship charter is a core part of how we manage our relationships. 21 the charter itself provides the aspiration to build and maintain the best ‘ regulator / regulated ’ supervisory relationships possible with all the different regulated entities by outlining how we will behave and communicate with one another. 22 _ _ _ _ _ _ _ _ _ _ _ _ 21 this section draws on our relationship charter document, available from the rbnz website : https : / / www. rbnz. govt. nz / regulationand - supervision / cross - sector - oversight / our - relationship - charter - with - regulated - entities 22 we have introduced the relationship charter to banks and insurers, and will be discussing it with our other regulated sectors over time. our transformation as a prudential regulator unclassified ref # x798971 v1. 2 unclassified it represents a mutual undertaking of how we will work together to achieve this aspiration. the charter commits us and the financial sector to a mutual understanding of appropriate conduct and culture. it is underpinned by the principle of ’ te whakatopu ’ – to assemble, consolidate, and combine our efforts. our behaviours will be : honest : positions are openly stated, constructively, freely and frankly ; achievement focused : work together to achieve sound and efficient outcomes ; diligent : provide clear expectations and deliver on them ; open - minded : each other ’ s perspective is constructively sought and understood ; and professional : disagreements can happen on issues, not people. our communication will be : clear : easily understood,

liquidity management : principles for liquidity provision and the end of an abundant era by karen silk, reserve bank assistant governor on 22 october 2024 a speech delivered to cba global markets conference in sydney ref # 21748793 v1. 4 introduction e nga mana, e nga reo. e nga karanga maha o te wa. tena koutou, tena koutou, tena koutou katoa, good morning. it ’ s great to be back in sydney representing te putea matua, the reserve bank of new zealand. i want to thank cba for hosting this event and inviting me to speak with you today. over the past year or so we have undertaken significant work reviewing both the composition and use of our balance sheet in delivering our objectives. in prior speeches i have addressed both the reviews of our foreign reserves ’ framework and our financial resources, plus the multiple roles we play in ensuring stable financial markets. 1 in my comments today i will focus on how we are considering the future use of our balance sheet to manage liquidity in the financial system and the principles that will inform that. we manage liquidity to support financial stability not only during periods of market dysfunction, but also to ensure the efficient settlement of payments and anchoring of short - term interest rates near the official cash rate ( “ ocr ” ). there are three key messages i would like you to take away from my remarks today. first, the reserve bank is resourced and ready to provide liquidity to support market functioning when necessary to meet our objectives. second, we will apply a principles - based approach to the provision of liquidity to financial markets. the intention of our principles is to preserve incentives for market participants to seek market - based solutions to their own liquidity needs in the first instance and not rely on the reserve bank as a ‘ lender of first resort ’. 2 third, our liquidity management framework will ensure we have the right facilities and operations in place to maintain settlement cash at an ample level, as we decline from the post - covid abundant levels. however, market participants should also be prepared to be more active in the management of their own liquidity. a principles - based approach to addressing domestic market dysfunction in march 2020, at the onset of the covid - 19 pandemic, the reserve bank deployed a range of balance sheet tools in response to dysfunction in the new zealand government bond ( nzgb ) market and the