RBNZ’s Bollard discusses earthquake contingency plans

Alan Bollard, governor of the Reserve Bank of New Zealand, on Tuesday discussed some of the precautionary measures taken by the central bank to prepare for future natural disasters that may hamper its operations.

At the Rotary Club of Wellington and Victoria University of Wellington conference in Wellington, New Zealand, Bollard said: "In the event of an emergency the [central] bank's focus would remain on the maintenance of economic stability, as much as possible. With this in mind, the [central] bank has been proactive in developing its policies and procedures to ensure the resilience of our organisation and the economy in the event of significant disruptions."

Bollard said the central bank had taken a number of precautionary measures in the event of a disruptive incident to its main office in Wellington. He said a seismic assessment of the Reserve Bank's office in September showed that the building could withstand an earthquake greater than the one recently experienced in Christchurch. However, Bollard said that even though the building could withstand an earthquake, there was a risk that damage to surrounding buildings could make the Wellington office inaccessible.

To ensure the central bank's core functions can be maintained in such circumstances, Bollard said an Auckland office had been set up that houses a dozen staff on a day-to-day basis. "These staff are engaged in a number of business-critical roles including foreign reserves management, domestic liquidity, and payments and settlement systems to ensure the economy of New Zealand would continue to function with some stability in the event of a major disaster," he said.

Click here to read the speech.