Which central bank was established in 1934 under New Zealand’s Reserve Bank Act?

The Reserve Bank of New Zealand was established in 1934 under New Zealand’s Reserve Bank Act.

Before its creation, New Zealand did not have a fully independent central bank performing the complete range of modern central-bank functions. The new institution was designed to centralize note issuance and monetary responsibilities, helping the country respond to economic pressures during the Great Depression.

The Reserve Bank is headquartered in Wellington. It issues New Zealand’s currency, conducts monetary policy, oversees parts of the financial system, and provides banking services to the government. Its currency responsibilities cover the New Zealand dollar and the country’s banknotes and coins.

The institution should not be confused with Bank of New Zealand, a commercial bank founded in the nineteenth century. The Reserve Bank of New Zealand is the statutory central bank, while Bank of New Zealand serves customers and businesses as a retail and commercial lender.