The Treasury

Global Navigation

Personal tools

Financial Assets and Liabilities


Financial assets and liabilities are held for prudent fiscal management purposes. The Crown acquires financial assets to the extent that they serve a management purpose, such as funding Crown liabilities associated with contractual obligations and policy commitments, and/or to build buffers against adverse events.

Liabilities represent borrowing by the Crown to fund investment or operating deficits, insurance obligations or other contractual obligations such as defined benefit retirement schemes. The financial portfolio contains the majority of Crown liabilities.[32]

Figure 4.59 - Financial assets and liabilities by entity
Figure 4.59 - Financial assets and liabilities by entity   .
Source:  The Treasury

Specific examples include:

  • Funds under management, and their associated liabilities (where applicable), to meet the future costs from demographic pressures (NZSF), personal accidents (ACC), natural disasters (EQC) and defined benefit pension schemes (GSF).[33]
  • Crown borrowings and associated assets, managed by the Treasury’s Debt Management Office (NZDMO) to meet financing and liquidity requirements.
  • The Reserve Bank of New Zealand’s (RBNZ) assets and liabilities for financial system liquidity management and crisis intervention.


  • [32]Other liabilities are debt issued by SOEs or MOM companies, and minor obligations incurred as part of government operations, such as accounts payable.
  • [33]Collectively designated as the Crown Financial Institutions (CFIs).
Page top