The RBNZ (which I will also refer to as “the Bank”) is also mandated to promote the soundness and efficiency of the financial system. The Bank is owned by the Crown and capital is provided by the government, to whom dividends are returned.
The Act grants the Bank the right to deal in foreign exchange, issue currency, and act as lender of last resort if it deems it necessary3. These arrangements and powers underpin the Bank’s financial strength and its risk exposure.