Includes special features of this country’s banking system and rules/laws that might impact U.S. business.

The Reserve Bank of New Zealand oversees the banking system of New Zealand.  Like the U.S. Federal Reserve, it formulates and implements monetary policy, monitors banks, manages currency issuance, and acts as the central bank of New Zealand.  It grants banking licenses and operates the Exchange Settlement Account System (ESAS), through which banks make regular, high-value payments with each other. Additionally, the Reserve Bank provides clearing and settlement services to the financial markets for high-value debt and equities. New banks must apply for a separate license for foreign exchange trading, but this usually poses no difficulty.

There are 24 registered banks in New Zealand.  To reduce bank failures, registered banks must meet minimum standards.  Overseas entities own more than 90 percent of the country’s banking assets. TSB Bank Limited of New Plymouth, SBS Bank, and Kiwi Bank, a government-established bank operated are the only domestically owned banks.   Additionally, finance companies, insurance companies, and building societies are engaged in capital formation and investment. The Securities Commission regulates these institutions.

Banks in New Zealand provide customary retail and commercial business including depository services, lending, and foreign exchange services.  These banks maintain the usual correspondent relationships with banks around the world.

The Government of New Zealand's liberalization of the banking system has ended almost all restrictions on the number, activities, and ownership of banks operating in New Zealand. There are no limits on the number of licenses granted, and foreign-owned institutions have full equality with nationally based firms.  In general, banks operate on an "at your own risk" policy for both management and depositors.  Customers’ deposits are not covered by any system of depositors’ insurance. 

Prepared by the International Trade Administration. With its network of more than 100 offices across the United States and in more than 75 markets, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.