Reserve Bank calls for views on liquidity

The Reserve Bank has issued a consultation document on proposed changes to the way it manages liquidity.

Submissions on the document are due by April 20.

The bank started a review of its liquidity management operation in 2005.

The consultation document highlights some issues which need to be resolved with the current liquidity management system.

"Under the current system the available collateral is not expanding at a similar rate to demand for liquidity. The resulting pressures affect costs to participants and the credit risks faced by the Reserve Bank," the bank said in a statement.

The bank said the changes would be technical adjustments and there would be no monetary policy implications.

- NZPA