WELLINGTON, March 31 (Xinhua) -- The Reserve Bank of New Zealand (RBNZ) on Monday outlined its efforts to enhance competition in the banking sector while appearing before the Finance and Expenditure Committee's banking inquiry.

Acting Governor Christian Hawkesby emphasized the RBNZ's focus on competition, citing initiatives such as proportionate prudential standards, a depositor compensation scheme, expanded access to the payments system, and digital currency exploration.

"Advancing competition and innovation in the financial sector is a team effort across government agencies, regulators and the industry itself," Hawkesby said.

RBNZ Chair Neil Quigley announced a review of key capital settings, responding to claims that current bank capital requirements may hinder competition.

The review, involving international experts, will assess capital risk weights for residential, corporate, and community lending, development of a new crisis management framework, alongside broader prudential settings.

A review report is expected by the end of this year. Enditem

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