Cabinet paper

Cabinet Paper DEV-23-SUB-0169: Financial Arrangements for the Reserve Bank

Publication type:
Cabinet paper
Status:
Current
Document (signed) date:
Issue date:
Version note:

Some parts of this release would not be appropriate to release and, if requested, would be withheld under the Official Information Act 1982 (the Act). Where this is the case, the relevant sections of the Act that would apply have been identified. Where information has been withheld, no public interest has been identified that would outweigh the reasons for withholding it.

Part of:
Corporate author:
Office of the Minister of Finance
Viewpoint:
Government
Publication category:
Official information
Copyright:
© Crown Copyright, Attribution 4.0 International (CC BY 4.0)
Ministerial portfolio:
Finance
Last updated:
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Accessible version

Only the Proposal section of this Cabinet paper is extracted below in HTML. If you require an accessible version please contact [email protected] and cite DEV-23-SUB-0169 as a reference.

Cabinet Paper: DEV-23-SUB-0169: Financial Arrangements for the Reserve Bank#

Proposal

1I am informing the Committee of my decisions relating to the financial arrangements of the Reserve Bank of New Zealand (the Bank). I am seeking Cabinet’s agreement to provide the Bank with a capital contribution of $1.3 billion.

2Subject to my consideration of the public interest test under section 65ZD of the Public Finance Act 1989, I intend to provide the Bank with an indemnity to cover risks resulting from policy interventions that the Bank may need to undertake to support financial stability, such as interventions in the New Zealand Government Bond market. I would expect these interventions would be aimed primarily to support New Zealand’s financial stability. I intend to terminate the existing indemnity to support the Large Scale Asset Purchase (LSAP) programme. This would not terminate the liability for LSAP bonds purchased to date but would terminate this indemnity for future bond purchases.

[Extract ends]

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