We have issued a second class authorisation permitting the overseas banks, subject to conditions, to carry on certain types of wholesale business in New Zealand without being registered here as a bank.
We have also established and published a public register of overseas banks able to use restricted words while carrying on certain forms of business in New Zealand without being registered here as a bank.
The register is available on the Restrictions on the use of the word 'bank' page.
August 2019 — new guidance published
In August 2019, we published 2 guidance notes on the use of restricted words by unregistered overseas banks carrying on activities in New Zealand. Restricted words include 'bank’ and its derivatives such as 'banker' and 'banking'.
We also published a class authorisation gazette notice under section 65 of the Reserve Bank of New Zealand Act 1989 (the Act). This permits unregistered overseas banks to use restricted words when carrying on certain prescribed forms of wholesale business in New Zealand.
The guidance notes and class authorisation notice set out how we will assess:
- whether an overseas bank is carrying on an activity in New Zealand, and therefore covered by the restrictions on the use of restricted words in Part 4 of the Act
- when to authorise an unregistered overseas bank, or class of unregistered overseas bank, to use restricted words while carrying on an activity in New Zealand.
Collectively, these measures are designed to provide greater certainty and transparency about how overseas banks wishing to use restricted words in New Zealand are treated.
2018 Consultation document on authorisations for use of restricted words by overseas banks
Our 2018 consultation informs our current approach to authorisations for the use of restricted words by overseas banks.