06 December 2022
Adam Irish
[FYI request #21074 email] Dear Adam
Thank you for your email of 8 November 2022 to the Reserve Bank of New Zealand – Te Pūtea
Matua under the Official Information Act 1982 (OIA), as follows:
I request under under the Official Information Act what are the total fees paid by each
bank for access to the RBNZ leander of last resort and overnight market scheme each
year. And how is this calculated, is it based on a percentage total assets(loans held by
the bank)? Additionally what fees are paid yearly by each bank for the deposit
guarantee scheme provided. Are these fees paid to the Government as a dividend by the
RBNZ? If fees aren't being paid by the banks, why not? As the RBNZ is essentially
providing insurance.
Response
The answers to your questions are set out below.
What are the total fees paid by each bank for access to the RBNZ leander of last resort and
overnight market scheme each year. And how is this calculated, is it based on a percentage total
assets(loans held by the bank)? We do not charge banks a fee for the ability to access our lender of last resort and other
facilities. They are subject to the terms and conditions prescribed under the Operating Rules
and Guidelines, publicly available on the RBNZ website at:
https://www.rbnz.govt.nz/financial-
markets/domestic-markets/operating-rules-and-guidelines-for-domestic-markets, and the
specific conditions of the respective facility they are accessing.
Information on all facility terms and conditions can be found summarised in the document at
the following link:
https://www.rbnz.govt.nz/financial-markets/using-our-balance-sheet-to-
support-monetary-and-financial-stability.
Additionally what fees are paid yearly by each bank for the deposit guarantee scheme provided.
Are these fees paid to the Government as a dividend by the RBNZ? If fees aren't being paid by
the banks, why not? As the RBNZ is essentially providing insurance
Under the Deposit Takers Bill, the RBNZ will have the ability to levy deposit taking entities who
are captured under the Deposit Compensation Scheme. As the Bill has not yet been passed,
we are yet to begin levying deposit taking entities – and as yet no decision has been made
regarding the amount or frequency of the levies.
2
The draft legislation anticipates that the RBNZ will invest the levies received, net of any
operating costs, so as to build up the fund over time to cover any potential compensation
claims that may arise. The Deposit Compensation Scheme will not take effect until 12 – 18
months after the Deposit Takers Bill has been passed into law and, as such, we are currently
still working through these details.
You have the right to seek an investigation and review of this response by the Ombudsman, in
accordance with section 28(3) of the OIA. The relevant details can be found on the
Ombudsman’s website at
www.ombudsman.parliament.nz. Please note that we intend to publish a copy of this response on the RBNZ website:
www.rbnz.govt.nz/research-and-publications/official-information-requests. Responses to
requests are published in order to improve public transparency and provide an additional
resource for anyone seeking information.
Yours sincerely
Janeca Miranda
Senior Advisor, Government and Industry Relations
Reserve Bank of New Zealand – Te Pūtea Matua
