Reserve Bank of New Zealand (RBNZ)
The Reserve Bank of New Zealand (RBNZ) is the central bank of New Zealand. It is responsible for the formulation and implementation of monetary policy, the regulation of financial institutions, and the issuance of currency. The RBNZ was established in 1934 and is based in Wellington. It is governed by the Reserve Bank Act 1989 and is accountable to the Minister of Finance.
History of the Reserve Bank of New Zealand
The Reserve Bank of New Zealand was established in 1934, following the passage of the Reserve Bank Act. The Act was passed in response to the Great Depression, which had caused a severe economic downturn in New Zealand. The Act established the RBNZ as the central bank of New Zealand, with the responsibility of managing the country’s monetary policy. The RBNZ was initially modelled on the Bank of England, with the Governor of the RBNZ appointed by the government.
In 1989, the Reserve Bank Act was amended to give the RBNZ greater autonomy. The Act established the Reserve Bank Board, which is responsible for setting monetary policy. The Board is made up of the Governor, the Deputy Governor, and four other members appointed by the government. The Act also established the Reserve Bank Council, which is responsible for advising the Board on monetary policy.
Comparison of Reserve Bank of New Zealand and Other Central Banks
| Central Bank | Year Established | Governor | Board Members |
|---|---|---|---|
| Reserve Bank of New Zealand | 1934 | 1 | 5 |
| Bank of England | 1694 | 1 | 9 |
| European Central Bank | 1998 | 1 | 25 |
| Bank of Japan | 1882 | 1 | 9 |
Summary
The Reserve Bank of New Zealand (RBNZ) is the central bank of New Zealand. It was established in 1934 and is responsible for the formulation and implementation of monetary policy, the regulation of financial institutions, and the issuance of currency. The RBNZ is governed by the Reserve Bank Act 1989 and is accountable to the Minister of Finance. The Act established the Reserve Bank Board, which is responsible for setting monetary policy, and the Reserve Bank Council, which is responsible for advising the Board on monetary policy. For more information about the RBNZ, visit the official website here.
See Also
- Monetary Policy
- Central Bank
- Currency
- Financial Institutions
- Bank of England
- European Central Bank
- Bank of Japan
- Federal Reserve System
- Bank of Canada
- Reserve Bank Act 1989
