Reserve Bank of New Zealand Act 1989
157
Commenced: 1 Feb 1990
ANALYSIS
Analysis
Title
1 Short Title and commencement
2 Interpretation
3 Interpretation of provisions relating to false or misleading information
4 Act to bind the Crown
I: Constitution of Reserve Bank of New Zealand
5 Reserve Bank of New Zealand
6 Branches and agencies
II: Functions and Powers of Reserve Bank
Central Bank
7 Bank to act as central bank
Monetary Policy
8 Primary function of Bank
9 Policy targets
10 Formulation and implementation of monetary policy
11 Governor to ensure policy targets followed
12 Bank may be directed to formulate and implement monetary policy for different economic objective
13 Bank's primary function not affected
14 Advice concerning effects of monetary policy
15 Policy statements
Foreign Exchange
16 Dealing in foreign exchange by Bank
17 Power of Minister to direct Bank to deal in foreign exchange within guidelines
18 Power of Minister to fix exchange rates for foreign exchange dealing by Bank
19 Effect of directions on policy targets
20 Effect of directions on monetary policy
21 Foreign exchange gains and losses
22 Temporary suspension of foreign exchange business
23 Bank to advise Minister on foreign exchange matters
24 Foreign reserves
Currency
25 Issue of currency by Bank
26 Power of Bank to call in currency
27 Legal tender
28 Defacing bank notes
29 Making or issuing of other bank notes or coins
30 Reproduction or imitation of currency
Other Functions and Powers
31 Bank to act as lender of last resort
32 Bank may provide settlement account services
33 Financial sector policy advice
34 Government banking business
35 Securities registry services
36 Bank may require financial institution to supply information
37 Failure to supply information
38 Requirement that information be audited
39 Powers
III: Management of Reserve Bank
Governor and Deputy Governor
40 Governor
41 Duties of Governor
42 Conditions of employment of Governor
43 Deputy Governor
44 Conditions of employment of Deputy Governor
45 Removal of Deputy Governor from office
46 Disqualification of Governor and Deputy Governor
47 Incapacity of Governor and Deputy Chief Executive
48 Vacancy in office of Governor
49 Removal of Governor from office
50 Removal of Deputy Governor from office by Order in Council
51 Delegation
Board of Directors
52 Board of directors
53 Duties of Board
54 Membership of Board
55 Term of office of non-executive directors
56 Considerations affecting appointment of non-executive directors
57 Extraordinary vacancies
58 Disqualification of non-executive directors
59 Removal from office of non-executive directors
60 Meetings of Board
61 Directors to disclose interests
62 Committees
63 Fees and expenses of non-executive directors
IV: Use of Words ``Bank'', ``Banker'', and ``Banking''
64 Restriction on use of words ``bank'', ``banker'', and ``banking''
65 Certain persons exempt from application of section 64
66 Power to require change of name or title
V: Registration of Banks and Prudential Supervision of Registered Banks
67 Registration and prudential supervision
68 Exercise of powers under this Part
Registration of Banks
69 Register
70 Application for registration
71 Voluntary removal of name from register
72 Offence
73 Determination of applications
74 Conditions of registration
75 Publication of principles
76 Registration of certain persons
77 Cancellation of registration
78 Carrying on business in prudent manner
79 Annual fee
80 Credit assessment of registered banks
Financial Disclosure by Registered Banks
81 Public disclosure of financial and other information by registered banks
82 Disclosure statements to be signed
83 Bank may require disclosure statement to be corrected
Advertising by Registered Banks
84 Interpretation
85 Content of advertisements by registered banks
86 Regulations
87 Offence to advertise in contravention of regulations
88 Bank may prohibit advertisements by registered banks
Provisions Applying to Disclosure Statements and Advertisements
89 Offences in relation to disclosure statements and advertisements
90 Civil liability
91 Defences
92 Fair Trading Act 1986 not affected
Supply of Information
93 Supply of information for purposes of prudential supervision
94 Requirement that information be audited
95 Bank may require report on financial and accounting systems
96 Disclosure of information to Bank by auditors
97 Auditor to inform registered bank of intention to disclose
98 Protection of auditors
Powers to Obtain Information and Documents
99 Powers to obtain information and documents
100 Requirements on entering and searching premises
Investigations
101 Investigation of affairs of registered bank
102 Powers of person appointed to carry out investigation
103 Offences in relation to investigations
104 Requirements to be complied with by person carrying out investigation
Miscellaneous Provisions
105 Confidentiality of information
106 Procedure for obtaining warrants
107 Effect of warrant
108 Effect of proceedings
109 Effect of final decision that exercise of powers under section 99 unlawful
110 Effect of final decision that exercise of powers under section 101 or section 102 unlawful
Registered Banks may be Required to Consult with Reserve Bank
111 Bank may require registered bank to consult
112 Bank may give advice and assistance
113 Bank may give directions
114 Offence to contravene directions
115 Offence to disclose giving of notice
116 Miscellaneous provisions with respect to notices and directions
Statutory Management of Registered Banks
117 Statutory management of registered banks and associated persons
118 Grounds on which registered bank may be declared to be subject to statutory management
119 Advisory committee
120 Statutory manager to comply with directions of Bank
121 Considerations affecting exercise of powers by statutory manager
122 Moratorium
123 Statutory manager may incorporate company under Companies Act 1955 to acquire business of branch of foreign institution
124 Vesting of property subject to security
125 Proof of vesting
126 Prohibition against removal of assets
127 Statutory manager may suspend payment of money owing
128 Management of registered bank to vest in statutory manager
129 Powers of statutory manager
130 Statutory manager empowered to carry on business of registered bank
131 Statutory manager may pay creditors and compromise claims
132 Sale of registered bank
133 Consents not required under other Acts
134 Sale of property or assets subject to a security
135 Proof of transactions
136 Statutory manager may petition to wind up registered bank
137 Provisions applying where liabilities included in sale
138 Power to trace property improperly disposed of
139 Application of certain provisions of Companies Act 1955
Miscellaneous Provisions
140 Application of this Part to joint statutory managers, associated persons, and subsidiaries
141 Termination of appointment of statutory manager
142 Statutory manager may apply to High Court for directions
143 Prior winding up or receivership to cease
144 Termination of statutory management
145 Priority for certain debts in winding up
146 Indemnity
147 Registered bank not entitled to be informed about exercise of powers
148 Expenses of statutory management
149 Advances to statutory manager and members of advisory committee
150 Duty to deliver books and property to statutory manager
151 Offence to destroy, alter, or conceal records
152 Regulations relating to powers of Bank and statutory manager
153 Application of other Acts
154 Appointment of auditors
155 Annual accounts
156 Annual report by statutory manager
VI: Financial and Other Matters
157 Financial year
Income and Expenditure
158 ``Notional surplus income'' defined
Income and Expenditure 12669DF21.PAG
159 Funding agreements
160 Contents of funding agreements
161 Funding agreements to be ratified by House of Representatives
162 Application of surplus income
163 Annual report and accounts
164 Contents of financial statements
165 Management statements
166 Auditors
167 Performance audit
VII: Miscellaneous Provisions
168 Bank to be ``good employer''
169 Bank to exhibit sense of social responsibility
170 Application of Banking Act 1982 to Bank
171 Conflict with other Acts
172 Obligations under this Act not limited
173 Regulations
174 Consents under regulations
175 Offences against regulations
176 Penalties for offences
177 Time for laying information for certain offences
178 Evidence
179 Directors and employees not personally liable
180 Amendment to Income Tax Act 1976
181 Amendments to Securities Act 1978
182 Amendments to Superannuation Schemes Act 1989
183 Amendments to Trustee Banks Restructuring Act 1988
184 Amendment to Securities Amendment Act 1988
185 Consequential amendments
186 Repeals and savings
187 References to trading banks to be read as references to registered banks
188 Savings
189 Procedure for applying this Act to persons subject to statutory management under Reserve Bank of New Zealand Act 1964
190 Transitional provisions in relation to Part VA and Part VC of Reserve Bank of New Zealand Act 1964
191 Transitional provisions in relation to office holders
192 Transitional provision in relation to accounts of Bank
Schedule(s)
1 FIRST SCHEDULE: Enactments Amended
2 SECOND SCHEDULE: Enactments Repealed