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Our balance sheet (R1)

This is the Reserve Bank's balance sheet – a summary of the assets and liabilities we hold to fulfil our functions.

Special note

Provision for dividend not included in Reserve Bank balance sheet

Read more
Previous years: Monthly:
Jun 2020 Jun 2021 Feb 2022 Mar 2022 Apr 2022 May 2022 Jun 2022
Assets
Cash Balances 9,838 5,325 7,911 7,925 6,274 10,249 7,972
Investments - Foreign Currency 15,661 7,946 6,174 5,746 5,955 5,662 5,907
Investments - New Zealand Government Securities 3,168 3,529 3,723 3,731 3,718 3,725 3,732
Securities Purchased under Agreements to Resell 897 5,550 10,398 11,814 11,842 12,551 14,325
Securities - LSAP Programme 21,989 57,496 54,891 53,646 51,660 51,641 51,283
Crown Indemnity for LSAP Programme 57 3,126 5,973 7,254 8,358 8,368 8,782
Derivative Assets 602 471 331 523 478 303 271
Other Financial Assets 3,712 516 852 650 1,026 1,055 1,466
Other Assets 176 167 165 168 169 168 174
TOTAL ASSETS 56,100 84,126 90,418 91,457 89,480 93,722 93,912
Liabilities
Deposits 41,603 69,346 76,110 77,776 74,349 78,728 78,273
Crown Indemnity for LSAP Programme 8 25 10 1 0 0 0
Term Liabilities 1,582 1,397 1,401 1,401 1,401 1,403 1,403
Derivative Liabilities 1,073 424 588 387 969 865 1,327
Securities Sold under Agreements to Repurchase 166 487 538 85 815 136 777
Reserve Bank Bills 100 275 0 0 0 800 200
Currency in Circulation 7,941 8,175 8,912 9,022 9,089 8,989 8,980
Other Financial Liabilities 502 1,013 113 188 185 94 173
Other Liabilities 16 149 9 10 9 10 10
TOTAL LIABILITIES 52,991 81,291 87,681 88,870 86,818 91,025 91,144
Net Assets/Equity
Net Assets/Equity 3,109 2,835 2,737 2,587 2,662 2,697 2,768
Total Liabilities and Net Assets/Equity 56,100 84,126 90,418 91,457 89,480 93,722 93,912

Provision for dividend not included in Reserve Bank balance sheet

14 July 2022

If a dividend is formally approved for the 2021/22 financial year then R1 will be retrospectively updated to reflect a dividend after the Bank’s Annual Report is published in September.


View all Our balance sheet Special notes

Find out more about how the Reserve Bank used its balance sheet to support monetary and financial stability.

The data: coverage, periodicity and timeliness

Coverage characteristics

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

Periodicity

Monthly.

Timeliness

We release data 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. We update and release it on the first working day of the month.

View the statistics release calendar

Integrity

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

We provide this information as a service to the public.

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

Provisional data are italicised. New data, or revised data, are in bold font. We deem data as provisional when a series is under review. This applies to the summary table only and not Excel files. We generally publish revisions when we are next due to update and release the table. Should we need to make revisions more promptly, we will post a special note.

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

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

We prepare series data are in accordance with generally accepted accounting practice in New Zealand. Specific accounting policies are disclosed in our annual report.

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

Our 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

Assets

Cash balances

Current accounts and margin accounts.

Current accounts and margin accounts are carried at amortised cost less impairment losses.

Investments foreign currency

Fixed interest securities issued by foreign government, foreign near-government entities and supranational organisations, including accrued interest and cash collateral paid as part of our 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 Statement of Financial Performance in the year in which they arise.

Cash collateral paid is carried at amortised cost.

Investments New Zealand government securities

Holdings of securities issued by the New Zealand government; that is, nominal bonds and inflation-indexed bonds.

We intend to hold these securities until maturity. These government securities are measured at amortised cost less expected credit losses.

Securities purchased under agreements to resell

Where we purchase securities under agreements to resell (reverse-repurchase agreements), the securities are not reported in the Statement of Financial Position. We do not enjoy the risks and rewards attached to ownership of those securities. Accordingly, we record as assets the consideration receivable from the agreements to resell the securities. 

At initial recognition, all reverse-repurchase agreements are recognised at fair value. Subsequently, the consideration receivable under an agreement to resell is recorded at fair value, except for the Funding for Lending Programme Tranche 1, as explained in the paragraph below. Movements in the fair value of reverse-repurchase agreements are reported in the Statement of Financial Performance within Net Gains / (Losses) from Fair Value Changes.

Funding for Lending Programme (FLP)

Reverse-repurchase agreements under FLP (Tranche 1) are accounted for at amortised cost less any provision for expected credit losses. Reverse-repurchase agreements under FLP (Tranche 2) are accounted for at fair value. The contractual provision in FLP Tranche 2 allowing a facility fee to be charged, which is contingent on a decline in the volume of lending means that fair value must be used to account for FLP Tranche 2 assets. 

Concessionary loans for Term Lending Facility

Reverse-repurchase agreements under the TLF are deemed to be concessionary loans under PBE IFRS 9 at initial recognition, where the fixed rate for the term of the loan (OCR) is less than the market rate for other high quality fixed interest securities of similar duration. The present value of the difference between the fixed rate of interest and the assessed market rate is expensed upon initial recognition, then amortised back as Interest Income over the remaining life of the loan.

Securities – LSAP programme

Holdings of securities purchased from the secondary market

The LSAP programme is an instrument used to lower borrowing costs to households and businesses. We buy securities on the secondary market in exchange for newly created settlement balances. This is sometimes called quantitative easing (QE).

Securities in the programme are accounted for on a fair value basis with the interest component of the return accounted for using the effective interest rate method.

For more information, refer to Large Scale Asset Purchases.

Crown indemnity for large scale asset purchase programme

Large scale asset purchase programme Crown indemnity.

The Crown has agreed to indemnify us in respect of interest risk losses which we incur in respect of the indemnified LSAP securities and credit risk losses on the indemnified LGFA bonds (together net losses).

The Crown reimburses us for any net losses from the LSAP programme and, conversely, any surplus from the programme must be paid to the Crown. The net losses from the programme is determined as income from the LSAP securities including any realised gains and losses from disposal of LSAP assets, less the cost of funding those assets. Additionally, the Crown has agreed to indemnify us for any credit risk losses on LGFA securities, being contractual cash flows due in respect of LGFA securities in the LSAP programme that we do not receive. The net losses for the LSAP programme is calculated for each calendar month and the relevant payment to or receipt from the Crown is made the following month.

The indemnity from the Crown is accounted for as a derivative under PBE IFRS 9 as it contains contractual obligations and rights in regard to the transfer of cash at a future date, and consequently meets the definition of a financial instrument. The indemnity is accounted for at its fair value. The fair value of the indemnity is determined to be the direct inverse of the unrealised change in the fair value of the underlying assets less the funding costs of purchasing the LSAP securities. We also record as a liability or asset, as the case may be, unsettled payments to (or from) the Crown for realised net returns.

Derivative 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 Statement of Financial Performance.

Other financial assets

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

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

Our 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 Statement of Financial Performance.

Holdings of purchased from the secondary market; that is, early purchase of New Zealand government securities and Bond Market Liquidity Support:

  1. Early purchase of New Zealand government securities: As part of our liquidity management operations, we purchase New Zealand government securities generally up to six months before these securities mature. Gains and losses arising from changes in the fair value of these securities are recognised in the Statement of Financial Performance.
  2. Bond Market Liquidity Support: the Bond Market Liquidity Support (BMLS) facility aims to promote and support the functioning of key security markets during periods of market instability. Our presence in the markets and our willingness to transact enhances market liquidity and reduces bid-offer spreads that would otherwise prevail. The BMLS facility involves us purchasing or selling security, principally government bonds and LGFA securities. Gains and losses arising from changes in the fair value of these securities are recognised in the Statement of Financial Performance.

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 less provision for impairment. 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 us, 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 we own. 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. We obtain 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.

Memo item: New Zealand government securities

New Zealand government securities are included as a memo item in the historic series of R1. This includes:

  • Securities in the LSAP programme (recorded in Securities – LSAP programme)
  • Early purchases of New Zealand government securities (recorded in other financial assets)
  • Bond Market Liquidity Support (recorded in other financial assets). 

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.

Crown indemnity for LSAP programme

Large scale asset purchase programme Crown indemnity.

Refer to Crown indemnity for Large Scale Asset Purchases programme in assets.

Term liabilities

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 Statement of Financial Performance in the year in which they arise.

Derivative liabilities

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

Securities sold under agreements to repurchase

Where we sell securities under agreements to repurchase, the security continues to be included as an asset in our 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 Statement of Financial Performance.

Where securities are lent under our securities lending programme and we receive other securities as collateral, those securities are recorded off-balance sheet. Up to 30 June 2017, we recorded an asset being the market value of the securities lent and a liability for the same amount in respect of the collateral we return at the conclusion of the loan. Changes in the value of the liability were reflected by a change in the corresponding asset. We record income from securities lending as it accrues.

Reserve Bank bills

Short-term discount securities we issue 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 Statement of Financial Performance in the year in which they arise.

Currency in circulation

The face value of notes and coins issued into circulation, including collectors' currency. Currency we issue represent a claim on us in favour of the holder.

Other financial liabilities

Includes our 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, we record a liability equal to the face value of that currency still in circulation.

We have 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, we record a liability equal to the face value of that currency.

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

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

Symbol or convention Definition
0 Zero or value rounded to zero
- Not applicable
.. Not available
bold Revised/new
italics Provisional
Light grey background Historical

General notes

  • Individual figures may not sum to the totals due to rounding
  • Percentage changes are calculated on unrounded numbers
  • You are free to copy, distribute and adapt these statistics subject to the conditions listed on our copyright page.