Under the Reserve Bank of New Zealand Act 1989 (‘the Act’), the Reserve Bank is responsible for formulating and implementing monetary policy, promoting a sound and efficient financial system, and carrying out other functions and exercising other powers as set out in the Act.
The Act provides for the appointment of the Reserve Bank’s Board of Directors, Governor and Deputy Governors, and its corporate powers.
It also provides for the Bank’s powers and functions in respect of banking supervision, and regulation of non-bank deposit takers and payment systems.
The Reserve Bank has powers and function under other legislation:
- Insurance (Prudential Supervision) Act 2010: The Reserve Bank administers this Act, and is the prudential regulator and supervisor of all insurers carrying on insurance business in New Zealand.
- Anti-Money Laundering and Countering Financing of Terrorism Act 2009: The Reserve Bank is one of three supervisors under this Act, which places obligations on New Zealand’s reporting entities to detect and deter money laundering and terrorism financing. This Act comes fully into effect on 30 June 2013.
- Bills of Exchange Act 1908 and Cheques Act 1960.
These Acts can be viewed electronically on the New Zealand Legislation website. Regulations made under these Acts can be viewed on the same site.
The Reserve Bank Bulletin contains articles on legislation and changes that have occurred over time.