Why we provide ESAS accounts
The purpose of ESAS is to provide reliable and final settlement so resources can be used efficiently across the economy. ESAS helps us promote the soundness of the financial system and implement the monetary policy.
ESAS has very limited payment features focused on 'wholesale' activities. Exchange settlement accounts are not a substitute for commercial bank accounts and may not be suitable for many financial organisations.
How exchange settlement accounts work
Section 32 of the Reserve Bank Act 1989 allows us to provide settlement account services for financial institutions.
Exchange settlement accounts are basic current accounts only. An account holder can conduct settlements with other account holders in central bank funds, which lets the receiver of those funds have absolute faith in the quality of the funds received. However:
- No credit is provided. The account must be in funds at all times.
- We calculate interest for each account holder on a daily basis based on the overnight balance. Account holders receive the overnight deposit rate (at or near the official cash rate) on balances up to a maximum balance that we determine. Balances in excess of this amount are remunerated at the official cash rate less zero basis points. We may from time to time vary these arrangements.
- There is no right of access to lender of last resort (LLR) facilities and intra-day or inter-day liquidity. Access to intra and inter-day liquidity is a separate decision based on the creditworthiness criteria used to determine acceptable domestic counterparties.
- No other rights or status are conferred.
Criteria for new applicants
From April 2025, we have new ESAS access criteria. The new criteria apply a two-step eligibility approach, considering:
- If an applicant is engaged in business activities that align with the purpose of ESAS.
- If the applicant has an acceptable risk profile, which includes anti-money laundering compliance and meeting prudential, governance and operational requirements.
The access criteria list entity and business types that align with the purpose of ESAS and set out the risk-related requirements.
The applicant is responsible for providing evidence that they meet the criteria, including any work and costs associated with getting supporting documents produced.
We will continue to update this page with guidance for applicants on information requirements and the application process.
Read the access criteria in full (PDF, 457 KB)
Licensed NBDTs in New Zealand seeking access for holding reserves to meet prudential liquidity requirements can apply for access now.
While every application will be carefully and individually assessed, the way NBDTs intend to use ESAS and the fact that they are already licensed by us mean the application process will be less complex than for other non-bank entities and can be expedited.
In Phase 2, ESAS will open to applications from other entities engaged in business activities aligned with the purpose of ESAS, as specified in the ESAS access criteria. This may include payment service providers, overseas deposit takers and operators of designated Financial Market Infrastructures (FMIs).
We expect to open this application process in the 3rd quarter of 2025. We are confirming operational details and developing guidance to support potential applicants through this process.
We will provide an update when the opening date has been confirmed.
Settlement banks with NBDT customers
NBDTs need a registered bank that uses ESAS (settlement bank) to move funds into an ESAS account. If you’re a settlement bank and you have NBDTs as customers, they may contact you about banking arrangements for ESAS.
If we can help with these conversations, please email us at [email protected].
How to apply
The application process has been designed to provide personalised guidance early in the process, so you understand whether you are likely to meet the access criteria and what the application process will entail for your entity. There are checkpoints where you can decide whether you’d like to continue with the process.
The application process involves:
- Submitting an Expression of Interest (EOI)
- An introductory meeting with us to discuss why you want an exchange settlement account and how you plan to use it, technology and onboarding requirements, costs, and how ESAS rules would apply to your entity
- Submitting your completed application form, which is provided after the introductory meeting
- Our review and decision
It’s hard to estimate how long the process will take, given each entity may need to take different actions to gather and submit the required information.
We will process the information we receive as quickly as possible. We’ll keep you informed throughout the application process, so you know what stage you’re at and what comes next.
Complete the EOI
If you’re a registered bank or a licensed NBDT in New Zealand, you can start your application process now by downloading and submitting an Expression of Interest (EOI).
- Download the EOI form (PDF, 715 KB)
- Send your completed EOI to [email protected].
Application information for NBDTs
A BIC is an international standard for routing business transactions and identifying business parties. BICs are provided by Swift, a global member-owned cooperative that provides secure financial messaging services.
Swift provides 2 types of BICs: connected BICs with access to the Swift messaging network, and non-connected BICs with no access that are used for reference purposes only.
NBDTs joining ESAS will only require a non-connected BIC. Non-connected BICs are provided free of charge by Swift, but Swift has recently advised us that the lead time to obtain one can be 2 to 3 months. If you already have a BIC, you can use this for an ESAS account.
How to register for a non-connected BIC and a branch code | SWIFT
You don't need a BIC until your application is approved and you move to onboarding when your BIC is used as your unique identifier for ESAS account setup.
However, given the lead time, if you’re thinking of applying for access to ESAS, you may wish to start the process with Swift straight away.
Please contact us at [email protected] if you have questions about the BIC requirement.
- check your balance
- generate reports
- sweep funds back to your settlement bank (registered bank that uses ESAS)
However, NBDTs will need a settlement bank to move funds into your ESAS account. Your settlement bank will use your BIC to direct funds.
Please contact us at [email protected] if you have questions about the role of your settlement bank.
You may ask your settlement bank to act as your agent. An ESAS agent is an existing ESAS account holder who is authorised to act on another account holder’s behalf in ESAS, via the ESAS user interface or Swift network.
An agent is optional and not a requirement for access to ESAS.
If you have an agent, in addition to moving funds into your ESAS account (a standard settlement bank function), they can sweep funds on your behalf. Your agent will need a connected branch code assigned and published by Swift to identify them as an ESAS agent. The lead time for this can be 2 to 3 months and there are associated costs. Your agent may pass on these costs and/or charge additional fees to act as your agent.
If you’re thinking about using an agent, please contact [email protected] for more information on the agent role and functionality.
How much it costs to apply for access to ESAS
There is an $8000 application fee payable at the time you submit your application form. You don't need to pay this fee until after you’ve submitted an EOI, had an introductory meeting with us, and decided you’d like to proceed.
You will also need to pay for any external application costs – for example, professional services for supporting documentation.
If your application is successful, you will need to pay for onboarding costs such as technical configuration or infrastructure requirements. We will discuss this with you during the application process.
Fees for using ESAS
- a monthly subscription fee of $2000, effective from 1 July 2025 and
- a per-transaction fee of approximately $3.50 (the transaction fee is reviewed every 6 months to ensure that operating costs are recovered).
Read about ESAS operating costs in the ESAS Annual Report
ESAS rules
Any new ESAS account holders would be subject to the same ESAS rules as existing account holders. This is as agreed and provided for in the existing rules.
If you have questions
If you have questions or need help with your application, email us at [email protected]