Reserve Bank balance sheet ($m) - R1

Released
14 November 2017 03:00 p.m.
Next release
14 December 2017 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Monthly
Previous years: Monthly:
Oct 2015 Oct 2016 Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017
Foreign currency financial assets
Cash balances 7,710 8,603 11,687 10,070 9,722 10,558 14,725
Securities purchased under agreements to resell 678 2,760 483 - 418 901 512
Investments 11,244 9,625 9,537 8,268 11,059 9,797 10,330
Derivative financial assets 681 456 816 825 431 517 346
Other foreign currency financial assets 167 170 165 190 155 164 186
Total foreign currency financial assets 20,480 21,614 22,688 19,354 21,785 21,936 26,099
Local currency financial assets
Securities purchased under agreements to resell 1,400 - 200 200 700 - -
New Zealand Government securities 3,345 3,418 3,666 4,776 4,837 4,827 4,847
Other local currency financial assets 411 206 61 45 109 96 327
Total local currency financial assets 5,156 3,624 3,927 5,021 5,646 4,923 5,173
Total financial assets
Total financial assets 25,636 25,238 26,615 24,374 27,430 26,858 31,272
Other assets
Other assets 90 100 142 143 144 145 145
TOTAL ASSETS
Total assets 25,726 25,338 26,757 24,518 27,575 27,004 31,417
Foreign currency financial liabilities
Short-term foreign currency financial liabilities 145 410 361 384 121 392 692
Securities sold under agreements to repurchase 678 604 483 - - - -
Derivative financial liabilities 931 700 467 434 668 469 1,063
Term liabilities 1,119 965 956 946 992 984 1,033
Total foreign currency financial liabilities 2,873 2,679 2,267 1,764 1,781 1,846 2,788
Local currency financial liabilities
Deposits 12,343 13,095 14,187 11,925 15,259 14,519 16,222
Securities sold under agreements to repurchase - - 22 207 - 38 492
Reserve Bank bills 1,158 170 259 607 340 523 1,543
Currency in circulation 5,580 5,744 5,899 5,884 5,910 5,951 6,057
Other local currency financial liabilities 114 89 92 89 90 91 90
Term liabilities 796 793 1,198 1,197 1,197 1,198 1,195
Total local currency financial liabilities 19,991 19,891 21,656 19,908 22,795 22,319 25,599
Total financial liabilities
Total financial liabilities 22,864 22,570 23,922 21,672 24,576 24,164 28,387
Other liabilities
Other liabilities 4 6 150 150 149 4 5
TOTAL LIABILITIES
Total liabilities 22,868 22,576 24,072 21,822 24,725 24,169 28,392
EQUITY
Equity 2,858 2,762 2,685 2,695 2,850 2,835 3,025
TOTAL LIABILITIES AND EQUITY
Total liabilities and equity 25,726 25,338 26,757 24,518 27,575 27,004 31,417

The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

Data are published as end of month figures in millions of New Zealand dollars. The series start from July 2011.

Data on liabilities denominated in foreign currency includes Short-term Foreign Currency Liabilities, Securities Sold under Agreements to Repurchase, Derivative Financial Liabilities and Term Liabilities. Data on liabilities denominated in NZ dollars includes Deposits, Securities Sold under Agreements to Repurchase, Reserve Bank Bills, Currency in Circulation, Other Local Currency Financial Liabilities, Term Liabilities, Other Liabilities and Equity.

Data on assets denominated in foreign currency includes Cash Balances, Securities Purchased under Agreements to Resell, Investments, Derivative Financial Assets and Other Foreign Currency Financial Assets. Data on assets denominated in NZ dollars includes Securities Purchased under Agreements to Resell, New Zealand Government Securities, Other Local Currency Financial Assets and Other Assets.

See the series description for more information.

Periodicity

Monthly

Timeliness

Data is released two to three weeks after the reference month.

Access by the public

Statistics release calendar

The Statistics Release Calendar provides a long-term plan of scheduled releases. It is updated and released on the first working day of the month.

Integrity

Dissemination of terms and conditions under which official statistics are produced, including confidentiality of individual responses

The information is disseminated by the Reserve Bank of New Zealand as a service to the public.

Provision of information about revisions and advance notice of major changes in methodology

Provisional data are italicised. Data are deemed provisional when a series is under review. New data, or revised data, are in bold font. This applies to the summary table only and not excel files. Revisions are generally published when the table is next due to be updated and released. Should revisions need to be made more promptly, a note is posted on the website.

Any major changes in methodology will be posted as a special note.

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

Series data are prepared in accordance with Generally Accepted Accounting Practice in New Zealand. Specific accounting policies are disclosed in the Reserve Bank's Annual Report.

Dissemination of statistics that support statistical cross-checks and provide assurance of reasonableness

The full Reserve Bank Annual Report (subject to audit).

Data prior to July 2011 is available in the discontinued F1 and F2 tables. Note that the asset and liability categories in F1 and F2 may not be directly comparable with R1.

Last updated November 14, 2013

Foreign Currency Financial Assets

Cash Balances

Foreign currency-denominated current accounts and margin accounts.

Cash balances are carried at amortised cost less impairment losses.

Securities Purchased under Agreements to Resell

Foreign currency securities purchased under agreements to resell, including the Bank's securities lending programme.

Where the Bank purchases securities under agreements to resell, it records as an asset the consideration receivable, at fair value, from the agreement to resell the security. Movements in the fair value of reverse-repurchase agreements are reported in the Income Statement.

Where securities are lent under the Bank's securities lending programme, the Bank receives collateral in the form of cash or other securities and the securities continue to be recorded as assets in the Bank's Statement of Financial Position. The Bank's agent administers the securities lending programme and monitors the securities lending and related collateral against requirements agreed with the Bank. From 1 July 2017 when the collateral received is in the form of securities those securities will be recorded off-balance sheet. Previously the Bank recorded an asset being the market value of the securities lent and a liability for the same amount in respect of the collateral to be returned by the Bank at the conclusion of the loan. Changes in the value of the asset were reflected by a change in the corresponding liability. The Bank records income from securities lending as it accrues.

Investments

Fixed interest securities issued by foreign government, foreign near-government entities and supranational organisations, including accrued interest, and cash collateral paid as part of the Bank's swap arrangements.

Fixed interest securities are recognised initially at fair value. Realised and unrealised gains and losses arising from changes in the fair value of financial assets are included in the Income Statement in the year in which they arise.

Cash collateral paid is carried at amortised cost.

Derivative Financial Assets

Primarily foreign currency swaps, bond and interest rate futures, interest rate swaps and cross currency basis swaps, including accrued interest.

Derivatives are initially recognised in the Statement of Financial Position at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at their fair value. Fair values are obtained from quoted market prices in active markets, including recent market transactions, or valuation techniques, as appropriate. Derivative transactions, such as foreign currency swaps, and the payment and receipt of different currencies, are stated in the Statement of Financial Position at the net of the fair value of receipts less the fair value of payments, both expressed in New Zealand dollars. The net fair value of each derivative contract is determined individually and carried as an asset if the net fair value is positive and as a liability if that value is negative. Gains and losses on all derivatives are recognised in the Income Statement.

Other Foreign Currency Financial Assets

Sundry foreign assets including short-term unsettled sales of financial assets and the Bank's long-term investment in shares in the Bank for International Settlements.

Sales of financial assets are recognised on trade date, the date on which the Bank commits to sell the asset. A receivable for the unsettled sale is recorded until settlement date.

The Bank's investment in shares in the Bank for International Settlements is carried at fair value. Gains and losses arising from changes in the fair value are recognised directly in equity until the asset is derecognised or impaired, at which time the cumulative gain or loss previously recognised in equity is recognised in the Income Statement.

Local Currency Financial Assets

Securities Purchased under Agreements to Resell

New Zealand dollar-denominated securities sold under agreements to resell.

Where the Bank purchases securities under agreements to resell, it records as an asset the consideration receivable, at fair value, from the agreement to resell the security. Movements in the fair value of reverse-repurchase agreements are reported in the Income Statement.

New Zealand Government Securities

Holdings of securities issued by the New Zealand government, including accrued interest.

The Bank intends to hold these securities until maturity or for an indefinite period of time but they may be sold in the course of the Bank's operations. As part of its liquidity management operations, the Bank purchases New Zealand government securities generally up to six months before these securities mature.

New Zealand government securities are carried at fair value. For securities where the intention is to hold until maturity, gains and losses arising from changes in the fair value are recognised directly in equity until the asset is derecognised or impaired, at which time the cumulative gain or loss previously recognised in equity is recognised in the Income Statement. For securities held as part of the Bank's liquidity management operations, gains and losses arising from changes in the fair value are recognised in the Income Statement.

Other Local Currency Financial Assets

Accounts receivable and sundry financial assets.

These assets are carried at amortised cost less impairment losses.

Other Assets

Inventories of currency on hand, property, plant and equipment, intangible assets, currency and artwork collections and archives.

Inventories of currency on hand are recognised in the Statement of Financial Position at cost. Costs include the cost of bringing inventories to their present location and condition. For the portion of inventories of currency on hand that relates to currency repatriated to the Bank, this cost is measured at the current replacement cost of producing the currency at the time of repatriation.

Property, plant and equipment include land and buildings owned by the Bank. Land is recorded at fair value. Buildings are recorded at depreciated fair value. Surpluses of book value over historical cost are recorded in the equity. Where the book value of this class of asset falls below historical cost, previous revaluations are reversed and any remaining balance is charged as an expense in the financial year it occurs. The Bank obtains an independent valuation of land and building every three years. In the years between independent valuations, an annual assessment is made of whether or not there is likely to have been a material change in value. An independent valuation is obtained where a material change has occurred.

Other assets are carried at cost less depreciation and impairment losses.

Intangible assets comprise acquired and internally-developed computer software. Intangible assets are stated at cost less accumulated amortisation and impairment losses. Costs include all direct expenses incurred to acquire and bring to use the specific software. Capitalised software development costs are amortised on a straight-line basis over the estimated useful life of the software.

Foreign Currency Financial Liabilities

Short-term Foreign Currency Financial Liabilities

Short sales of bonds denominated in foreign currencies, cash collateral received as part of the Bank's swap arrangements, including accrued interest, and short-term unsettled purchases of financial assets.

A short sale is a sale of a security that the Bank does not own. Securities that are sold short are recorded at fair value using quoted market offer prices. Any gains or losses are recognised in the Income Statement.

Cash collateral received is recognised initially at fair value and subsequently stated at amortised cost.

Purchases of financial assets are recognised on trade date, the date on which the Bank commits to purchase the asset. A payable for the unsettled purchase is recorded until settlement date.

Securities Sold under Agreements to Repurchase

Foreign currency-denominated securities sold under agreements to repurchase.

Where the Bank sells securities under agreements to repurchase, the security continues to be included as an asset in the Bank's Statement of Financial Position.

The consideration payable under the agreement to repurchase is recorded at fair value. Movements in the fair value of repurchase agreements are reported in the Income Statement.

Where securities are lent under the Bank's securities lending programme and the Bank receives other securities as collateral those securities are recorded off-balance sheet. Up to 30 June 2017 the bank recorded an asset being the market value of the securities lent and a liability for the same amount in respect of the collateral to be returned by the Bank at the conclusion of the loan. Changes in the value of the liability were reflected by a change in the corresponding asset. The Bank records income from securities lending as it accrues.

Derivative Financial Liabilities

Derivative financial liabilities are those derivative contracts where the net fair value is negative.

Refer to Derivative Financial Assets

Term Liabilities

Foreign currency-denominated financing provided by The Treasury., including accrued interest

Term liabilities are recognised initially at fair value. Realised and unrealised gains and losses arising from changes in the fair value of financial liabilities are included in the Income Statement in the year in which they arise.

Local Currency Financial Liabilities

Deposits

Deposits from the government, settlement institutions and other central bank deposits in New Zealand dollars, including accrued interest.

Deposits are recognised initially at fair value and subsequently stated at amortised cost.

Securities Sold under Agreements to Repurchase

New Zealand-denominated securities sold under agreements to repurchase

Where the Bank sells securities under agreements to repurchase, the security continues to be included as an asset in the Bank's Statement of Financial Position.

The consideration payable under the agreement to repurchase is recorded at fair value. Movements in the fair value of repurchase agreements are reported in the Income Statement.

Reserve Bank Bills

Short-term discount securities issued by the Reserve Bank including accrued interest.

Reserve Bank bills are recognised initially at fair value. Realised and unrealised gains and losses arising from changes in the fair value of financial liabilities are included in the Income Statement in the year in which they arise.

Currency in Circulation

The face value of notes and coins issued into circulation, including collectors' currency.

Currency issued by the Bank represents a claim on the Bank in favour of the holder.

Other Local Currency Financial Liabilities

Include the Bank's liability for the face value of demonetised currency still in circulation and sundry payables.

Currency demonetised before 1 July 2004 is recognised as a contingent liability, except for a provision retained in the Statement of Financial Position to cover expected future redemptions. For currency demonetised from 1 July 2004, the Bank records a liability equal to the face value of that currency still in circulation.

The Bank has a liability for the face value of collectors' currency. The face value of collectors' currency issued before 1 July 2004 is recognised as a contingent liability. For collectors' currency issued from 1 July 2004, the Bank records a liability equal to the face value of that currency.

Sundry payables are recognised initially at fair value and subsequently stated at amortised cost.

Term Liabilities

Local currency-denominated financing provided by The Treasury., including accrued interest

Term liabilities are recognised initially at fair value. Realised and unrealised gains and losses arising from changes in the fair value of financial liabilities are included in the Income Statement in the year in which they arise.

Other Liabilities

Include employee-related provisions and a provision for payments of dividends to the New Zealand government.

These provisions are stated at either the present value of future payments expected to be made in respect of services provided by employees up to balance date or at accrued actual entitlements at that date.

A provision for the payment of dividends to the New Zealand government is recorded after a direction is given by the Minister of Finance.

Equity

Capital, retained earnings, general and special reserves and current period accumulated income.


Symbols and conventions for summary table

0 Value rounded to zero
- Zero or not applicable
.. Not available
bold Revised/new
italics Provisional
light red background Historical

General notes

  • Individual figures may not sum to the totals due to rounding
  • Percentage changes are calculated on unrounded numbers
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