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About the New Zealand financial system

This section gives an overview of New Zealand's financial system which includes banks, non-bank lenders, licensed insurers and financial market infrastructures. Financial market infrastructures provide channels for clearing, settling and recording financial transactions.

About our financial system

The banking sector dominates the New Zealand financial system, with the largest share of overall assets, as shown in figure 1. In March 2022, banks had total assets of just over $667 billion.

Capital markets, places where savings and investments are channelled between suppliers with capital (financial assets) and those who need capital, are relatively less developed than the banking sector in New Zealand. The total market capitalisation undefined  of equities at the New Zealand Stock Exchange is valued at around $167 billion.

The domestic (New Zealand-based) bond market is around $171 billion (excluding government debt).

The managed fund industry is also small compared to banks, with around $200 billion of assets under management.

We regulate non-bank deposit takers which include building societies, credit unions and finance companies that take deposits from the public. They make up $3 billion of the Non-bank lending institutions' $18 billion.

Total assets are not yet available on a consistent basis for the insurance sector. The value of $83 billion is derived from individual insurer financial statements up to June 2020. Asset values may be accounted for differently across insurers.

Figure 1: Financial institutions' total assets (as at 31 March 2022)

Note: numbers may not sum due to rounding
Source: RBNZ Bank Balance Sheet (BBS), RBNZ Standard Statistical Return (SSR), RBNZ Non-Bank Deposit Taker Prudential Return (NBDTPR), individual insurer financial statements.