The banking sector dominates the New Zealand financial system, with the largest share of overall assets, as shown in figure 1 below. In September 2024, registered banks had total assets of around $715 billion.
Capital markets, where savings and investments are exchanged between those with capital (financial assets) and those who need it, are less developed than the banking sector in New Zealand. The total market capitalisation of equities at the New Zealand Stock Exchange as of 29 November 2024 is valued at around $161 billion.
The domestic (New Zealand-based) bond market is around $180 billion (excluding government debt).
The managed fund industry is also small compared to banks, with around $240 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' $23 billion of assets.
The insurance sector is composed of private licensed insurers and the public insurers. There are 84 licensed insurers operating. Total assets are not yet available on a consistent basis for the insurance sector.
Figure 1: Financial institutions' total assets (as at 30 September 2024)
