All banks operating in New Zealand must register with the Reserve Bank of New Zealand.
Applying to register as a bank
To apply for registration as a bank, you need to show that you meet requirements under Section 70 of the Reserve Bank of New Zealand Act 1989.
The Reserve Bank's role
The business of banks mainly consists of borrowing or lending money, although they usually provide other financial services as well. The Reserve Bank oversees New Zealand's banking system, including the registration and supervision of banks.
The Reserve Bank also administers government requirements that banks may have to meet before and after they're licensed. These are intended to protect New Zealand's banking system.
The Reserve bank is also responsible for maintaining a public register of registered banks.
After a bank is registered
Every provider registered on the Financial Service Providers Register (FSPR) must file an annual confirmation and pay the associated fee. At the same time you pay a levy to the Financial Markets Authority (FMA). The amount you pay depends on your bank's total assets and the other financial services you provide.
As a registered bank, the FMA levies you pay come under Class 2 of the Financial Markets Authority (Levies) Amendment Regulations 2012.