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. Net Interest Rate Differential

    In international markets, the difference in the interest rates ...
  3. NZD/USD (New Zealand Dollar/U.S. ...

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

    In the currency market, this is the abbreviation for the New ...
  5. Bank Reserve

    Bank reserves are the currency deposits which are not lent out ...
  6. Reserve Requirements

    Requirements regarding the amount of funds that banks must hold ...
Related Articles
  1. 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.
  2. Insights

    Trump-Supporter Peter Thiel Has New Zealand Citizenship

    The controversial investor and Trump advisor seems to have taken a liking to the island country.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Investing

    This Obscure ETF is on Fire (ENZL)

    This New Zealand ETF has been rallying. Is it sustainable?
  8. Personal Finance

    What is Fractional Reserve Banking?

    Fractional reserve banking is the banking system most countries use today.
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. 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 >>
  3. 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 >>
  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. 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 >>
  6. Why do commercial banks borrow from the Federal Reserve?

    Learn how commercial banks borrow from the Federal Reserve to meet minimum reserve requirements, and discover the pros and ... Read Answer >>
Hot Definitions
  1. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  2. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  3. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
  4. Inverse Transaction

    A transaction that can cancel out a forward contract that has the same value date.
  5. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  6. Solvency

    The ability of a company to meet its long-term financial obligations. Solvency is essential to staying in business, but a ...
Trading Center