This Act requires us to use the powers it gives to the Bank to promote the soundness and efficiency of the New Zealand financial system, and to avoid significant damage to the financial system that could be caused by the failure of a registered bank.
Despite the Government’s undertaking to open and transfer trust account funds to the Central Bank, Government deposits including trust accounts in commercial banks continue to remain high totaling K2,884.3 million. Thus, at the Central Bank, the amount of trust account funds decreased from K741.3 million in September 2011 to K366.3 million as at 23rd March 2012 (see Chart 5).