DEFINITION of 'Reserve Bank Of New Zealand'

The Reserve Bank of New Zealand is New Zealand's central bank and its overall purpose is to maintain the stability of New Zealand's financial system. The Reserve Bank of New Zealand is also responsible for maintaining monetary policy, meeting the currency needs of the public and providing support services for other banks. In 2007, New Zealand's government decided to expand the role of the Reserve Bank by increasing its regulatory oversight to include not only banks but also building societies, credit unions, insurance and finance companies.

BREAKING DOWN 'Reserve Bank Of New Zealand'

The Reserve Bank of New Zealand started operations in 1934 after the passing of the Reserve Bank Act of 1933. Unlike the United States Federal Reserve, the Reserve Bank of New Zealand does not have any private owners. It is entirely owned by the New Zealand government.

RELATED TERMS
  1. New Zealand Stock Exchange (NZE) ...

    The securities market in New Zealand. The New Zealand Stock Exchange ...
  2. NZD (New Zealand Dollar)

    The currency abbreviation or currency symbol for the New Zealand ...
  3. NZD/USD (New Zealand Dollar/U.S. ...

    The abbreviation for the New Zealand dollar and U.S. dollar (NZD/USD) ...
  4. Net Interest Rate Differential

    In international markets, the difference in the interest rates ...
  5. Capital Goods Price Index - CGPI

    An economic index computed by the New Zealand government that ...
  6. NZD

    In the currency market, this is the abbreviation for the New ...
Related Articles
  1. Retirement

    Are You Rich Enough to Retire in New Zealand?

    New Zealand is beautiful and welcoming to retirees – but only if they bring a healthy bank account. See how you measure up.
  2. Insights

    What Do the Federal Reserve Banks Do?

    These 12 regional banks are involved with four general tasks: formulate monetary policy, supervise financial institutions, facilitate government policy and provide payment services.
  3. Insights

    Regional Banks Give The Fed A National Perspective

    We all know that the Federal Reserve utilizes monetary policy to control the economy, but what do the 12 regional Federal Reserve Banks do?
  4. Trading

    Top 8 Most Tradable Currencies

    Currencies can provide diversification for a portfolio that's in a rut. Find out which ones you need to know.
  5. Personal Finance

    What Does a Central Bank Do?

    A central bank oversees a nation’s monetary system.
  6. Personal Finance

    Explaining the Reserve Ratio

    Reserve ratio is the amount of cash a bank must keep in its bank vaults or deposit into a central, governing bank.
  7. Financial Advisor

    Why Banks Don't Need Your Money to Make Loans

    Contrary to the story told in most economics textbooks, banks don't need your money to make loans, but they do want it to make those loans more profitable.
  8. Trading

    Explaining the Federal Reserve System

    The Federal Reserve System is the central bank of the United States. It regulates monetary policy and supervises the nation’s banking system.
  9. Investing

    Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  10. Insights

    New Zealand Government Projects Budget Surplus

    New Zealand's current budget surplus will be used for debt repayment and policies to shore up the economic growth.
RELATED FAQS
  1. What is the name of the currency in New Zealand?

    The New Zealand currency is known as the New Zealand dollar. The currency was decimalized in 1967, and divided into 100 parts ... Read Answer >>
  2. What do banks do to control the bank reserve?

    Understand what the Federal Reserve does in order to expand or contract the economy. Learn what depository institutions can ... Read Answer >>
  3. How are bank reserve requirements determined and how does this affect shareholders?

    Learn how bank reserve requirements are determined and how bank reserves affect shareholders through improved bank stability ... Read Answer >>
  4. How do central banks acquire currency reserves and how much are they required to ...

    A currency reserve is a currency that is held in large amounts by governments and other institutions as part of their foreign ... Read Answer >>
  5. Who determines the reserve ratio?

    Understand what the Federal Reserve is and what it regulates in the U.S. economy. Learn about the reserve ratio and how the ... Read Answer >>
  6. What happens if the Federal Reserve lowers the reserve ratio?

    Learn about the Federal Reserve's monetary policy and the tools it uses to control it. Understand what happens if the Federal ... Read Answer >>
Hot Definitions
  1. IRS Publication 970

    A document published by the Internal Revenue Service (IRS) that provides information on tax benefits available to students ...
  2. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  3. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  4. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  5. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  6. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
Trading Center