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Reserve Bank- New Zealand

April 26, 2019 by Investor

Reserve Bank- New Zealand
It is a Central Bank and the main aim of this bank is to preserve the efficiency and stability of a financial system. It can also be regarded as an institution which is responsible for handling the money supply of New Zealand and also to prevent rise in cost or other serious economic issues in New Zealand. This bank is solely responsible for destroying and printing the currency of New Zealand. As Reserve Bank is trying to accept the non- legal in the form of viable assets, it makes the money supply of New Zealand slightly stable than it is in some countries. The bank also makes sure about a high control on the banks of New Zealand by demanding a disclosure statement on a quarterly basis from every bank that operates in that country. Because of policyof Reserve Bank to lendunlimited quantities of money to the banks of New Zealand at over or under OCR, no other banks can charge rate of interest higher than OCR.

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