Under the Reserve Bank of New Zealand Act 1989 (‘the Act'), the Reserve Bank is responsible for formulating and implementing monetary policy, promoting a sound and efficient financial system, and carrying out other functions and exercising other powers as set out in the Act.
The Act provides for the appointment of the Reserve Bank's Board of Directors, Governor and Deputy Governors, and its corporate powers.
It also provides for the Bank's powers and functions in respect of banking supervision, and payments and settlement systems.
The Reserve Bank has powers and functions under other legislation:
- The Non-bank Deposit Takers Act 2013: The Reserve Bank acts as the prudential regulator and licensing authority for non-bank deposit takers.
- Insurance (Prudential Supervision) Act 2010: The Reserve Bank issues licences to insurers carrying on insurance business in New Zealand and undertakes prudential supervision of licensed insurers.
- Anti-Money Laundering and Countering Financing of Terrorism Act 2009: The Reserve Bank supervises banks, life insurers, and non-bank deposit takers for compliance with measures to detect and deter money laundering and terrorism financing.
These Acts can be viewed electronically on the New Zealand Legislation website. Regulations made under these Acts can be viewed on the same site.
The Reserve Bank Bulletin contains articles on legislation and changes that have occurred over time.