NZ Banking System Needs Payments Modernisation 'Essential' for Economic Progress

RBNZ Assistant Governor Angus McGregor says that if he had a magic wand to speed up legislative and regulatory changes, he would use it. The Reserve Bank is working on implementing the Deposit Takers Act (DTA), which will oversee the regulation of banks and non-bank deposit takers under a single prudential regime.

The DTA was passed in 2023, but its full implementation won't be complete until December 2028. McGregor acknowledges that the RBNZ's pace is not always as fast as desired, but he emphasizes the importance of taking industry feedback into account and ensuring that regulatory changes are done 'in a focused way.'

McGregor also highlighted the need for payments modernization in New Zealand, which lags behind other OECD countries. He notes that NZ is the only country without a modern payment system, with EFTPOS being the primary domestic payment platform.