Reserve Bank Of New Zealand

AAA

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.

INVESTOPEDIA EXPLAINS '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 Superannuation Fund

    A New Zealand government fund established in response to the ...
  2. Kiwi Bond

    Retail stock offered directly to the public and available only ...
  3. South African Reserve Bank

    The South African Reserve Bank is the reserve bank of the Republic ...
  4. National Bank

    In the United States, a commercial bank chartered by the comptroller ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Bankmail

    An agreement made between a company planning a takeover and a ...
Related Articles
  1. Top 8 Most Tradable Currencies
    Forex Education

    Top 8 Most Tradable Currencies

  2. Currency Exchange: Floating Rate Vs. ...
    Forex Education

    Currency Exchange: Floating Rate Vs. ...

  3. How The U.S. Government Formulates Monetary ...
    Personal Finance

    How The U.S. Government Formulates Monetary ...

  4. Commodity Prices And Currency Movements
    Forex Education

    Commodity Prices And Currency Movements

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center