The financial system at a glance

New Zealand has a sophisticated financial system involving many layers and players. The Reserve Bank regulates the institutions depicted directly under the magnifying glass in this financial system graphic.

All of us rely on the successful day-to-day functioning of New Zealand’s financial system.

This graphic shows which institutions, markets and infrastructures make up the financial system, and how they interact. At the heart of this financial system are New Zealanders, working and running businesses, spending, saving and investing.

Financial system

The financial system includes all of the main institutions and markets you hear about everyday – like the banks, finance companies, securities markets and insurance companies. It also includes ‘invisible’ market infrastructures such as the payment and settlement systems which ensure the millions of electronic financial transactions that occur each day are successfully delivered.

The Reserve Bank regulates the financial system for soundness and efficiency – and we regulate those institutions shown under the magnifying glass. The other institutions are regulated elsewhere – the Financial Markets Authority, for instance, regulates KiwiSaver providers and financial market intermediaries.

The financial system provides a robust framework for all of us to carry out economic transactions and to channel savings into investment, and so helps to support economic growth.

Key resources