The new department and the bank’s separate supervision team will work closely to achieve compliance goals, RBNZ said in a statement.

“The Enforcement Department will support the Bank’s more intensive supervisory and enforcement approach and help the bank promote a sound and efficient financial system built on integrity, innovation and inclusion,” said Deputy Governor Geoff Bascand, who will be leading the department.

The new department is developing the bank’s enforcement framework, including establishing an enforcement committee which will oversee enforcement actions for serious or repeated breaches of regulatory requirements, Bascand said.