The Reserve Bank's Markets Operations team implements monetary policy and manages liquidity in the banking system. It achieves this by undertaking a variety of operations in financial markets. The Bank also provides standby facilities for cash and Government bonds to registered market participants.
Facility | Objective | Method | Frequency | Announcement, Open, Close, Results |
Volume | Terms | Settlement | Statistics |
---|---|---|---|---|---|---|---|---|
Funding for Lending Programme (FLP) | Provide term funding, collateralised against approved Tier 1* collateral or RMBS, to lower the cost of borrowing for businesses and households. | Reverse enquiry | Daily Available as below: Initial allocation 7 December 2020 to 6 June 2022 Additional allocation 7 December 2020 to 6 December 2022 |
Window open 9.00am to 12.00pm Results reported next business day |
Allocations based on a bank’s eligible loans | 3 years | T+1 | |
Term Auction Facility (TAF) |
Provide term funding collateralised against approved (Tier 1 and 2)* collateral | Auction | Once a week (Tues) | 9.30am, 9:30am, 9.45am, 10am (approx) | 2 billion per auction^ | 3, 6 and 12 months | T+1 |
Refinitv: RBNZ05 Bloomberg: RBNM 5 |
Corporate Open Market Operations (COMO) |
Provide short-term funding collateralised against approved (Tier 3)* collateral | Auction | Once a week (Tues) | 11.00am, 11.00am, 11.15am, 11:30am (approx) | 500 million per auction^ | 1 day to 3 months | T+0 |
Refinitiv: RBNZ13 Bloomberg: RBNM 11 |
Large Scale Asset Purchases (LSAP) | Outright purchases of nominal and inflation-indexed New Zealand Government bonds to lower term interest rates and support market functioning | Auction | Three times per week (Mon, Wed & Fri) | 10.00am, 11.00am, 11.30am, 11.45am | Program size 100 billion
Nominal bonds cap of 60% of total issuance Inflation-indexed bonds cap of 30% of total issuance (Auction size set weekly by RBNZ) |
1 to 21 years (maturity governed by NZ Government bonds on issue) | T+2 |
Refinitiv: RBNZ03 & 09 Bloomberg: RBNM 4 & 8 |
Large Scale Asset Purchases - LGFA (LSAP LGFA) | Outright purchases of nominal Local Government Funding Agency ("LGFA") bonds to lower term interest rates and support market functioning | Auction | Once a week (Thurs) | 10.00am, 11.00am, 11:30am, 11:45am |
Program size is limited to 30% of overall LGFA bond issuance (Auction size set weekly by RBNZ) |
1 to 17 years (maturity) | T+2 |
Refinitiv: RBNZ03 &10 Bloomberg: RBNM 4 & 8 |
Reserve Bank Bills (RB Bills) | Instrument to withdraw liquidity using short-term Central Bank bills issued against cash | Auction | Twice a week (Mon and Weds) | 12.00pm, 2.30pm, 2.45pm, 3.00pm (approx) | 400 million per auction^ | 7 and 28 days | T+1 |
Refinitiv: RBNZ08 Bloomberg: RBNM 7 |
Bond Lending Facility (BLF) | Provide access to NZ government bonds as a lender of last resort to facilitate settlement. Priced at OCR minus 0.25% | Reverse enquiry | Daily | N/A, 3.00pm, 4.00pm, 3.00pm (next business day) | 500 million per day | Overnight | T+0 |
Refinitiv: RBNZ01 Bloomberg: RBNM2 |
Early Bond repurchase | Purchase of soon to mature New Zealand Government bonds for liquidity management | Reverse enquiry from banks; trading via Broker | Daily |
Window open 10.00am to 12.00pm and 2.00pm to 4.00pm Results 4.30pm (approx) |
Discretionary | 1 day to 18 months | T+2 |
Refinitiv: RBNZ22 Bloomberg: GPGX1549 14 6 |
Term Lending Facility (TLF) | Provide term funding collateralised against approved Tier 1* collateral or RMBS to support the Crown's Business Finance Guarantee Scheme ("BGFS") | Reverse enquiry | Monthly (18th - 20th business day of each month) | Window open 10.00am to 12.00pm and 1.00pm to 3.00pm. Results reported next business day | Determined by Crown and based on monthly outstanding numbers reported by individual banks | 5 years | T+1 | |
Bond Market Liquidity Support (BMLS) | Small scale purchases of nominal New Zealand Government bonds to support market functioning | Broker | Daily | Window open 10.00am to 3.00pm | Discretionary | 1 to 21 years | T+2 | D10 |
Bond Market Liquidity Support (BMLS LGFA) | Small scale purchases of nominal Local Government Funding Agency ("LGFA") bonds to support market functioning | Direct request for quote from banks; Broker | Daily | Window open 10.00am to 3.00pm | Discretionary | 1 to 17 years | T+2 | D10 |
FX Swaps (incl. Cross Currency basis swaps) | The sale of NZD, purchase USD or vice versa for a pre-agreed term for liquidity management and market functioning | Direct request for quote from banks; Broker, Reverse enquiry | Daily | Not applicable | Unlimited | 1 day to 6 months | Various |
Refinitiv: RBNZ02 Bloomberg: RBNM 3 |
Overnight Reverse Repo facility (ORRF) | Provides access to liquidity at a penalty rate and against Tier 1, 2 & 3* collateral for liquidity management and monetary policy purposes. Priced at OCR plus 0.25% | Automatic or reverse enquiry | Daily | Results announced 9.00am next business day | Unlimited subject to approved collateral | Overnight | T+0 |
Refinitiv: RBNZ02 Bloomberg: RBNM3 |
* Tier 1 - Government, Kauri & RB Bills
* Tier 2 - Bank, Local Authority, State Owned Enterprise & Residential Mortgage Backed Security
* Tier 3 - Corporate & Asset Back Securities
See our Repo eligible securities and haircuts page for a comprehensive list
^ The RBNZ reserves the right to adjust volumes
Participation in RBNZ facilities is limited to registered counterparties. For more information please visit the Domestic Markets section of the website.
Time | Monday | Tuesday | Wednesday | Thursday | Friday |
---|---|---|---|---|---|
0900-1200 | FLP | FLP | FLP | FLP | FLP |
0930-0945 |
TAF | ||||
1100-1115 |
COMO | ||||
1100-1130 | LSAP | LSAP | LSAP | ||
1100-1130 | LSAP (LGFA) | ||||
1430-1445 | RB Bills | RB Bills | RB Bills | ||
1500-1600 | BLF | BLF | BLF | BLF | BLF |
1000-1600 | Early Bond Repurchase | Early Bond Repurchase | Early Bond Repurchase |
Early Bond Repurchase |
Early Bond Repurchase |
Time | 18 - 20th business day of the month |
---|---|
1000-1200 & 1300-1500 |
TLF |
Time | Monday | Tuesday | Wednesday | Thursday | Friday |
---|---|---|---|---|---|
1000-1500 | BMLS | BMLS | BMLS | BMLS | BMLS |
1000-1500 | BMLS (LGFA) | BMLS (LGFA) | BMLS (LGFA) | BMLS (LGFA) | BMLS (LGFA) |
0700-1730 | FX Swaps | FX Swaps | FX Swaps | FX Swaps | FX Swaps |