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.