The Reserve Bank of New Zealand has signalled a more flexible approach to outsourcing in a re-write of proposed business continuity rules for local banks.
Australia's largest banks have been fighting a battle to change the Reserve Bank policy, which is aimed at ensuring that systemically important banks do not ousource key functions to overseas offices.
In a submission in April, The Australian Bankers' Assocation claimed the reforms could cost the industry up to A$300 million in lost efficiencies.
A revised draft of the policy published by RBNZ yesterday played down the overly-prescriptive elements of the original proposals and placed a greater emphasis on the role of bank directors in managing outsourcing risk.
"Provided that a large bank is able to meet the outcomes required, it will have freedom to pursue outsourcing strategies tailored to its particular circumstances and operational preferences," says the RBNZ.